Gold prices in India continue their gaining streak for the second straight day on firm global prices. On the MCX, June gold prices surged 0.74% to hit a fresh high of Rs. 47735 per 10 gm. Silver futures also rallied another 3% or Rs. 1388 to hit levels of Rs. 48,106 per kg.
On Friday, in the futures market, gold gained 1.56% or Rs. 727 to Rs. 47,381 per 10gm. Silver too rallied exorbitantly by 5.85% or Rs. 2583 to Rs. 46718 per kg. This is due to ease in restrictions in lockdown across major economies as major demand for silver consumption is at industrial level. Also China import and export data has shown improvement.
Gold Prices in the International Market
In the international market, gold prices on Monday gained on central banks' continuing liquidity measures and record low interest rate to prop up economies confronting Covid 19 impact, which helped it soar to seven-year high. The precious yellow-metal last was up 1% to $1758 per ounce.
After a halt at around levels of $1700 per ounce, gold prices have once again begun to gain momentum on US-China flare up over coronavirus, which backs safe-haven demand.
Also another reason fuelling the demand and hence price of gold is the stimulus packages being offered by central banks.
After gold scaled to a seven-year high price last month, Chifeng Jilong Gold Mining Co. based out of China restarted processing of gold ore from its mining facility in Laos, thereby resuming gold production after around 6.5 years. This comes as the Covid 19 pandemic has prompted investors to bet on safe-haven precious metal.
Outlook for gold in the near-term
In the near term, experts see gold prices to remain firm and can hit levels of 49000 per 10 gm in June 2020.