Gold Rate In India: Domestic gold futures soared to a record high of Rs 55,039 on Wednesday, as global rates extended a record run above the $2,000-per-ounce mark amid weakness in the US dollar and hopes of more stimulus measures against the coronavirus pandemic. Multi Commodity Exchange (MCX) gold futures, due to expire by the end of the session, quoted at an all-time high of Rs 55,039 at 12:26 pm. That marked a gain of Rs 975 - or 1.80 per cent - compared to their previous close of Rs 54,064. The MCX gold contract for an October 5 delivery was up 0.93 per cent (Rs 507) at Rs 55,058 at the time. (Track Current Gold Rate Here)
In the international market, spot gold hit a record high on safe-haven demand, on a weaker dollar and bets for more stimulus measures to revive a pandemic-ravaged economy. Spot gold was last seen trading at $2,014.41 per ounce, having hit a record high of $2,030.72 per ounce earlier on Wednesday.
Gold rates have broken a series of records over the past few weeks amid rising COVID-19 cases around the globe and worsening ties between the world's two largest economies.
Typically, any sign of uncertainty in the financial markets boosts the appeal of gold as a safe-haven bet, as investors rush away from riskier asset classes. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
Meanwhile, the opening rate of gold jewellery stood at Rs 55,201 per 10 grams on Wednesday, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA). Gold jewellery prices vary in different parts of the country, due to factors such as taxes and making charges.
#Gold and #Silver Opening #Rates for 05/08/2020#IBJA pic.twitter.com/j422TXc3DG
(MCX gold futures touched a record high of Rs 55,039 hours ahead of the expiry of the August 5 contract)
What Analysts Say
Ravindra Rao, VP-head commodity research, Kotak Securities:
"Spot gold hit a record high level of near $2031/oz yesterday and is currently trading near $2016/oz. Gold has been on an up move for last few days and has now broken past the key $2000/oz opening way for further gains."
"Gold remains supported by persistent weakness in the US dollar, strong investor interest and safe-haven buying amid rising coronavirus cases globally and increased US-China tensions. Focus now will be on the monthly US employment report due at the end of this week."
Kishore Narne, head-commodity and currency, Motilal Oswal Financial Services:
“Gold and Silver have been best performing assets so far this year with 40 per cent and 50 per cent returns respectively so far this year. With aggressive stance of central banks to push unprecedented amounts of liquidity and keep interest rates lower coupled with reignited trade war concerns and rising COVID-19 infections and a threat of second wave infections providing a significant hindrance to global economic growth along with lingering geopolitical uncertainty provides a convincing fundamental backdrop for continuation up-trend in both precious metals."
"We continue to be bullish on gold with potential targets between Rs 65,000 and Rs 68,000/10 gms, and silver expected to reach anywhere between Rs 82,000 and Rs 88,000/kilogram over the next 12-15 months.”
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