First Time Ever! Gold Price Surges To Rs 50,000; Silver Crosses Rs 60,000/Kg Mark
The prices of gold have now hit an all time high in India, and for the second time in a row. Yes, for the first time ever, the prices of gold have breached Rs. 50,000 in the futures market.
This is the second day in a row when the prices of gold in India have been at an all time high.
Gold And Silver Prices Reach At An All Time High: Breach Rs. 50000
As per reports, on MCX, August gold futures went up by 1% to a new high of Rs. 500,10 per 10 gram. September silver futures on MCX hiked by 6.6% to ?61,130 per kg. in the previous session, the prices of gold had hiked by 1% or about Rs. 500. Whereas, in the previous session, the prices of silver had hiked by 6% or about Rs. 3400 per kg, which extended Monday’s gain of Rs. 1150.
Comparing it to the global market, the spot gold prices rose by 1.3% to $1,865.81 an ounce, which is the highest in about 9 years.
The prices of silver have surged in industrial activity as there are hopes about a vaccination on the coronavirus disease.
Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers said, “Gold has moved higher as demand was boosted by worries over a spike in COVID-19 cases and expectations of more stimulus measures. EU leaders agreed on a 750-billion-euro stimulus plan for regional economies hard-hit by the pandemic. The US is also working on a $1 trillion relief bill.”
Why Have Gold And Silver Prices Risen?
The reason behind the surge in the prices of gold and silver is the soft US dollar, the outbreak of the coronavirus pandemic, and the expectation of more stimulus measures. The prices of spot silver prices have risen by 7.2% to $22.8366 an ounce, which is the highest after 2013.
A lot of investors have now rushed to gold and silver due to the surging demand for safety amongst the uncontrollable outbreak of the coronavirus disease and the unpredictability of the economy.
SPDR Gold Trust, which is the world’s gold backed exchange-traded fund or the gold ETF, has revealed that the holdings hiked by 0.7% to 1,219.75 tonnes on Tuesday.