Gold Prices Touches All Time High

Gold prices scaled a new high on Wednesday and hit an all-time high of Rs 55,390 per 10 gram as a weak dollar and falling bond yields polished its safe-haven appeal. On the Multi Commodity Exchange of India Limited, the gold futures hit a record of Rs 55,390 per 10 gram after it rose 1.35%.Silver futures, too, surged 4.3% to Rs 72,850 per kg.

 Gold Prices Touches All Time

In the previous session, gold futures on MCX rallied about Rs 900 or 1.7%, hitting Rs 54,612 at intraday high, while silver surged Rs 4,200 or 6.4%.“Investors continue to remain buyers in safe-haven gold as they expect the metal will hold its value better than other assets as fallout from Covid-19 cripples the global economy,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.Expectations of more stimulus also boosted the safe-haven demand for non-yielding gold.

Many experts think gold will rally further towards Rs 65,000 level over the next 12-15 months.“An aggressive stance of central banks to push unprecedented amounts of liquidity and keeping interest rates lower provide a convincing fundamental backdrop for continuation up-trend in both precious metals,”  said Kishore Narne, Head – Commodity & Currency, Motilal Oswal Financial Services.