Gold prices on Wednesday (July 1, 2020) tracking global rally continued their upward journey to hit an all-time high today. On the MCX, gold futures for August delivery surged to an all-time high of Rs. 48982 per 10 gm.
In the previous session, in tandem with a spurt in international rates, gold prices in India hit a record high of Rs. 48,825 per 10 gm ( the price includes import duty and 3% GST).
In the international market, gold inched closer to an 8-year high on resurgence in coronavirus pandemic which spurs safe haven buying. Spot gold climbed 0.1% to $1,782.21 per ounce. On Tuesday, US gold futures surged 1.2% to climb above $1800/oz for the first time since 2011
Gold is on course for its third-straight monthly gains as widespread policy stimulus measures from central banks have resulted in lowering of interest rates, which augurs well for non-yielding assets such as gold.
On Tuesday, Federal Reserve Chair Jerome Powell said that bringing the pandemic under control is significant as the economy revives and also warned against lifting of any type of stimulus too soon.
"US-China tensions have added to challenges to global economy. Consumer demand remains weak amid higher price and slack economic growth. Gold may witness choppy trade as market players continue to assess virus situation however general bias may be on the upside owing to rising virus risks," Kotak Securities said in a note.