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Gold prices in India continued their record-breaking rally this week with rates piercing via the ₹51,000 barrier. On MCX, August gold futures settled 0.6% increased on Friday at ₹51,010 per 10 gram after hitting a brand new excessive of ₹51,184 earlier in the session, monitoring a rally in world markets. Silver futures on MCX edged increased to complete at ₹61,221 a kg. On a weekly foundation, gold rose about 4% whereas silver surged about 15%.
In world markets, gold crossed the $1,900 per ounce ceiling on Friday for the primary time since 2011. A worsening US-China row has added to issues about world financial system that’s already grappling with a resurgence in coronavirus circumstances in many international locations.
In but another escalation in US-China relations, Beijing ordered Washington to shut its consulate in the town of Chengdu after US requested China to shut its Houston consulate.
Also boosting gold’s safe-haven attraction is a steady surge in COVID-19 circumstances internationally that has contaminated over 1.57 crore folks and claimed 6.three lakh lives.
A weak greenback has additionally assist assist the gold’s rally. A weaker greenback often spurs shopping for of dollar-priced commodities as a result of they turn into cheaper for holders of different currencies.
“Gold prices have been driven higher by an escalation in US-China tensions. Investors are also looking for a hedge against possible inflation as hopes for more stimulus measures grow. Key focus would be Fed monetary policy meet next week,” stated Jigar Trivedi, analysis analyst at Anand Rathi Shares & Stock Brokers.
In India, gold prices have surged over 30% thus far this yr. Analysts say that silver has surged on hopes of a rebound in industrial exercise and a few traders perceiving silver as being undervalued in comparison with gold.
Indicative of the safe-haven demand for gold, world holdings of gold-backed change fund or gold ETFs have hit report highs. (With Agency Inputs)
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