NEW DELHI: MCX Gold hit a fresh all-time high of Rs 48,982 per 10 gm on Wednesday, while gold prices have rallied nearly 24 per cent this year. The precious metal had the best quarter, April-June, in more than four years in terms of price rise.
Internationally, gold price is near an eight-year high, trading at around the $1,800/oz. Nish Bhatt, Founder & CEO, Millwood Kane International, said that gold prices are up due to global uncertainty, and the rise in the number of new Covid-19 cases.
US Federal Reserve Chairman has stressed on the need to control the virus else it may affect the recovery of the U.S. economy.
Gold prices have rallied nearly 24 per cent this year, and had the best quarter (April-June) in more than four years in terms of price rise.
Bhatt said that easy liquidity by central banks across the globe has pushed interest rates down, making gold an attractive investment bet which is also considered a hedge against inflation and a safe haven in times of uncertainties.
The trade tensions between the US and China is another worry as it may delay economic recovery and lead to a further rise in prices of the yellow metal.
Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services, said the market sentiments are cautious on fast spreading of coronavirus around the global and concerns over a second wave of infection. Also, there are worries over the reigniting US-China trade war, giving a boost to safe haven demand for gold.
On Wednesday, the MCX Gold hit a fresh all-time high of Rs 48,982/10 gm and is hovering around Rs 48,910/10 gm. At the same time, MCX Silver continued to trade close to all-time high of Rs 50,000 per kg.
Gupta said currently the recent high in gold is acting as a crucial resistance and "we may see small correction in prices till Rs 47,500/47,000 per 10 gm.
However, the ongoing geopolitical tensions will boost safe haven demand for gold and once it crosses and sustains above Rs 49,000/10 gm, then Rs 49,750-Rs 50,600/10 gm is expected. (IANS)