Economy

Gold breaches ₹55,000 mark

Our Bureau Mumbai | Updated on August 05, 2020 Published on August 05, 2020

Hits new high on strong rally in global markets

The sharp rally in the international markets has pushed gold prices over the crucial ₹55,000 per 10 gram-mark on Wednesday even as the demand for the precious metal remained lacklustre in India.

The yellow metal ended higher at ₹55,448 on Wednesday against ₹54,004 logged in on Tuesday.

Gold in the international markets hit a new high by crossing the important barrier of $2,000 mark on hopes of another economic stimulus by the US government.

 

Spot gold in the US closed up 0.2 per cent to $2,022.42 per ounce after hitting above $2,030 on Tuesday.

Meanwhile, gold in the Indian futures market rallied. On MCX, gold futures hit a new high of ₹55,390 per 10 gram after it rose 1.35 per cent. Silver futures surged 4 per cent to ₹72,654 per kg.

Gold and silver have been best performing assets so far this year with 40 per cent and 50 per cent return respectively so far this year.

Kishore Narne, Head - Commodity & Currency, Motilal Oswal Financial Services said, With aggressive stance of central banks to push unprecedented amounts of liquidity and keep interest rates lower coupled with reignited trade-war concerns is supporting gold price rally.

Prathamesh Mallya, AVP- Research, Non-Agri Commodities, Angel Broking said silver has been shining brighter than gold in the international and domestic markets on back of rising investment demand and investors belief in silver as an asset class.

Silver prices will eventually move higher towards $27.5 per ounce in the international market and ₹75,000 per kg in the domestic markets, taking in to consideration the recent momentum in the metal, he added.

Meanwhile, the gold jewellery demand has hit a rock bottom though inflows into ETFs increased.

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Published on August 05, 2020
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