Gold Rate In India: Domestic gold futures on Thursday soared to an all-time high above the Rs 55,800 mark for the first time ever, as global rates hovered near the previous day's record peak. Multi Commodity Exchange (MCX) gold futures, due for an October 5 delivery, appreciated by Rs 746 - or 1.35 per cent - to touch Rs 55,844 at the strongest level recorded during the day. The MCX gold contract settled at Rs 55,808 for the day, up Rs 710 - or 1.29 per cent - from its previous close. (Track Current Gold Rate Here)
In the international market, gold rates extended their rally on Thursday, as the COVID-19 pandemic clouded the economic outlook and boosted bullion's safe-haven allure, though the rapid pace of gains could prompt some profit-taking.
Spot gold was last seen trading 0.50 per cent higher at $2,050.27 per ounce, having risen to an all-time high of $2,055.10 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. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
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.
Meanwhile, the closing rate of gold jewellery stood at Rs 55,914 per 10 grams on Thursday, 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 Closing #Rates for 06/08/2020#IBJA pic.twitter.com/kcKEjZUPLc
(MCX gold futures crossed the Rs 55,800 mark for the first time)
What Analysts Say
"MCX gold August contract hit a high of Rs.55,450/10 gram yesterday, the highest level ever for a first month contract. Gold has continued to rise supported by weakness in the US dollar, lower bond yields, strong investor inflows and safe-haven buying amid rising coronavirus cases and US-China tensions," said Ravindra Rao, VP-head commodity research, Kotak Securities.:
"Gold is severely overbought and a correction cannot be ruled out if we see some recovery in US dollar," he said.
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