Gold futures hit fresh record high, near Rs 52,000/10 gm

NEW DELHI: Domestic gold prices surged to fresh record high in Monday's morning session, tracking the trend in the international market as tensions between US and China and growing worries over economic conditions are fueling the move towards safe haven.Gold is often used as a safe store of value during times of political and financial uncertainty.US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.Gold futures hit an all-time high of Rs 51,833 on commodity bourses. Silver also hit the record high of Rs 64,849 during the day. goldpricewidgetJigar Trivedi, Research Analyst - Commodities Fundamental, Anand Rathi Shares & Stock Brokers, said, "MCX gold extended gains on Monday, hit a fresh an all-time high of Rs. 51,833 and there is no looking backwards. More importantly, COMEX gold has hit an all-time high of $1,944 per ounce today after September 2011 ($1,921) due to US-China tensions and a weaker dollar, while expectations of more stimulus to revive pandemic-hit economies lifted the metal's appeal as an inflation hedge. Momentum will definitely be positive for the intraday."Gold prices in the national capital continued to hit new highs, rising by Rs 475 to Rs 51,946 per 10 gram on Friday, on the back of gains in the international prices of the precious metal and a rupee depreciation, according to HDFC Securities. Silver, however, declined by Rs 109 to Rs 62,262 per kg.Globally, gold prices jumped to record highs on Monday as an intensifying U.S.-China row hammered the dollar and cemented expectations that central banks would continue pumping out stimulus to ease the economic pain from a worsening coronavirus pandemic.Spot gold rose 1.5 per cent to $1,928.83 per ounce by 0306 GMT after hitting an all-time high of $1,933.30. U.S. gold futures climbed 1.4 per cent to $1,924.20.Silver too joined the rally, jumping 4.5 per cent to its highest since September 2013 at $23.86 per ounce.The dollar fell to a near two-year low versus major currencies as a standoff between Washington and Beijing showed no signs of abating with both sides ordering the closure of consulates in Chengdu and Houston.Elsewhere, platinum rose 1.4 per cent to $926.58 and palladium climbed 0.5 per cent to $2,230.16.

from Economic Times https://ift.tt/3jPro23