After breaching Rs. 40000 mark per 10 gm on Friday, gold price on Monday on the MCX spurted by another Rs. 935 or 2.33% to a record high of Rs. 41047 per 10 gm, taking the total surge to as much as Rs. 1800 per 10 gm in last two trading sessions. On similar lines, silver March contract also scaled 2.25% or Rs. 1068 and quoted at Rs. 48595 per kg.
In times of geopolitical and economic crisis such as is the case in the current scenario with flaring US-Iran tension, gold gains appeal as a safe haven and investment demand for it sees sharp rally. This is to hedge risk in another riskier bets such as stocks, mutual funds etc.
Also, gold prices in the domestic market remain supported from the weakness in rupee which lowered past 72 mark per dollar as oil again climbed for the second consecutive day by as much as 2% after the US threatened to impose tariff on Iraq on Iran's retaliation to its airstrike on early Friday.
On the global front, price of gold surged 1.5% to its highest level since 2013 of $1579.55 per ounce.
Back home, because of heavy price on gold, its demand has remained subdued which is eminent from its imports which fell 12% from a year ago period its lowest in 3 years time. In the calendar year 2019, gold led its highest rally in the 2000 decade surging as much as 25%. And amid the fall in the yellow metal demand, dealers have been offering steep discounts of $13 per ounce.