The prices of gold on Monday jumped to fresh all-time high amid ongoing US-China trade tensions and rise in demand for safe assets.
The prices of gold on Monday jumped to fresh all time high amid ongoing US-China trade tensions and rise in demand for safe assets. The prices of yellow metal surged nearly 1 per cent to all time high levels, owing to gains in the foreign markets and as the Indian rupee plunged to the lowest level in 2019, global news agency Reuters reported citing dealers. The yellow metal futures touched a record high of Rs 39,196 per 10 grams in the morning trade, taking their gains to nearly 25 per cent this year. The local silver futures were 1 per cent higher at Rs 45,058 per kg, after rising to Rs 45,148 earlier in the day, a level last since in October 3, 2016.
“The US-China trade war with new tariff announcement has pushed gold and silver prices to a new six-year high as investors rushed for safe-haven assets. Depreciating Indian rupee also helped the rise in prices. We expect the current trend to continue for gold and silver. On the MCX, the Gold is likely to move towards 39,900 to 40,000 levels. Saying that 38,800 and 39,000 act as a strong crucial support levels for gold on the downside,” Pritam Kumar Patnaik, Head Commodities, Reliance Commodities said.
The positive trend is expected to continue for silver with rates likely to move higher towards 48,000 levels in coming days with 45,900 and 46,200 as support levels on the downside, he added.
“The SPDR GOLD ETF has continued to attract inflows amid heightened risk associated with trade spat. Certainly, the fundamentals are very strong for the yellow metal. Hence we recommend going long on every dip,” Jigar Trivedi, Fundamental Analyst – Commodities at Anand Rathi Securities Shares & Stock Brokers said.
Meanwhile, the asset managed by gold exchange funds (ETFs) rose to over Rs 5,000 crore in the first four months of the ongoing fiscal as investors turned to gold, Morningstar data showed.