As uncertainty mounts with resurgence of coronavirus active cases across the globe, gold has been gaining ground. In today's session (June 23, 2020), after rising a tad bit, prices fell to trade at Rs. 47905 on the MCX of gold futures contract, with a decline of 0.08% or Rs. 39. Silver too in line was trading with losses of 0.41% or Rs. 200 to Rs. 48300 per 10 gm.
In the previous session, gold in rupee terms escalated in price to a record new high with price of 24K gold just shy of Rs. 50000 per 10 gm by just Rs. 271. This is though inclusive of GST of 3% rate.
International gold rate
In dollar terms also experts expect the metal to make new highs going forwards as wide-order stimulus measures continue due to coronavirus fall-out from central banks around the world. On Monday, gold prices in international markets march to their highest price since 2012. This is both on concerns of second wave of infection as also Hong Kong security law concerns.
WHO has been warning of another threat 'a new and dangerous phase', though the cases that resurfaced in Beijing are now brought under control.
Prices will remain higher in the medium term as Federal Balance sheet shall further be strengthened in view of the pandemic.
Back in India, though marriage related buying has started the demand is just 30-40% in comparison to usual levels. Marriage season buying has commenced in a small way in certain places as customers feel prices could rise further or over fears of another lockdown," said Modak, CEO, PNG & Sons.
"The rise in rate, restrictions on shop timings due to the pandemic and lower disposable incomes especially among low ticket size buyers have crimped demand."