Gold price hit pass $1800 an ounce, highest since 2011

Andrew Cummings
July 9, 2020

In the global market, gold rates eased on Monday as risk sentiment improved ahead of USA services sector data, although losses were capped by worries over surging COVID-19 cases in some U.S. states. Spot gold fell rates declined 0.2% to $1,806, after rising to its $1,817.71 in the previous session - a nine-year high. On MCX, gold futures were down 0.05% to ₹49,134 per 10 gram while silver futures were up 0.09% at ₹51,427 per kg.

"Markets generally tend to operate through a prism of optimism and that optimism is being tested at the moment and gold is benefiting from that". United States gold futures fell 0.4 percent to $1,782.30. Analysts see gold prices to hit up to Rs 55,000 per 10 grams by the end of this year. Silver futures also moved on a listless note.

Globally, gold held steady above the key $1,800/oz level on Thursday, as worries over mounting Covid-19 cases offset hopes of a swift global economic recovery.

Jain further added that the overall trend for both the metals was positive and the buy-on-dip strategy would work until it gives closing below crucial support levels. "Coronavirus cases are once again on the rise across the world and investors are investing in safe-haven assets such as gold", he said. "The economic slowdown and global growth forecast lower by International Monetary Fund also supported bullion", said Anuj Gupta, DVP Commodities and Currencies Research, Angel Broking Ltd. Today it surpassed the previous high of Rs 48,982 per 10 grams, hit on July 1.

Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

Gold's record-high stands at $1,921.18 an ounce.

Since India is highly dependant on imports to satisfy domestic demands for the yellow metal, gold prices in India are based on global rates and rupee's strength against the U.S. dollar.

However, stability in equity markets has kept a check on the upside.

The attraction for Gold is getting stronger in 2020 as Gold futures on Tuesday, finished at their highest since September 2011, with the metal climbing back to above the $1,800 an ounce mark.

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