Gold price have jumped for the third straight day as weak sentiment in the equities increase their appeal as a safe-haven.
In the gold futures market, gold is up for the third straight day with minor gains of 0.09% and hit an early high of Rs. 46499 per 10 gm.
On Thursday, gold scaled by Rs. 451 per 10 gm to above Rs. 46500 as there were hopes on fiscal and monetary measures from economies around the globe so as to counter the economic fall out due to coronavirus.
The rate of 10 gram 22-carat gold in Mumbai was Rs 42,627 plus 3 percent GST, while 24-carat 10 gram was Rs 46,536 plus GST. The 18-carat gold quoted at Rs 34,902 plus GST in the retail market.
Factors supporting run-up in gold
1. Global stimulus measures
2. Stability in crude price which has recovered from historic lows
3. Global central buying the metal
Failure of the Gilead's in treating the coronavirus infection will further drive equities globally lower, thereby aiding gold as a safe haven and hedge in times of uncertainty.
Meanwhile, gold is an investment to be betted upon and amid such a scenario analysts have estimated gold value to scale to Rs. 82000 per 10 gm by 2021 end i.e. in a span of 1.5 year, gold will gain 75%.