Gold prices hit all-time high

IANS File Photo
IANS File Photo

NEW DELHI, JULY 1 (IANS): Gold hit an all-time high on Wednesday with futures trading at Rs 48,871 per 10 gm as the demand for the safe haven asset continued to soar with the Covid-19 global shocks and economic uncertainty hammering down business sentiments.

 

"Gold surged to its highest in nearly 8 years on Tuesday as mounting fears of a resurgence of new coronavirus cases kept safe haven demand for gold alive, setting the precious metal on path for its biggest quarterly gain since March 2016. Gold has given a return of 20 per cent in 2020 so far.

 

Navneet Damani, VP- Commodities Research, Motilal Oswal Financial Services, said the broader trend on COMEX could be in the range of $1,775-$1,805 and on the domestic front prices could hover in the range of Rs 48,550-Rs 49,200.

 

The positive US consumer confidence number also could not dampen gold's rally. Uncertainties around the Hong Kong issue and a second wave of Covid-19 are increasing distress in the market, hence supporting the prices of the precious metal.

 

US Treasury Secretary Steven Mnuchin and Fed Governor Jerome Powell have pledged to do more for the US economy as it battles the enormous fallout of the virus outbreak. The market participants will focus on PMI numbers from major economies globally and private payroll numbers from the US, which will give a hint on the situation of the jobs market in the country.

 

Experts predict that with the current trend, gold may reach historic levels around Rs 65,000 per 10 gm in two years' time.

 

Analysts expect domestic futures to touch Rs 52,000 per 10 gm in the next few months till Diwali.