On the MCX, gold on June 22 hit a record high of Rs. 48289 per 10gm. In early trade, gold taking cues from international rates which jumped to one-month high, was trading higher by 0.71% or Rs. 339 at Rs. 48,276 per 10 gm. Silver too in line spurted 1.11% or Rs. 554 to Rs. 49190 per 10 gm.
Global gold rates peak to 1-month High
In the international markets, gold prices scaled to an over month-high as increase in coronavirus across the US continues to weigh. This is because gold gains as a safe haven when economic recovery shall be delayed due to the pandemic led disruption.
"There is continued upturns in COVID-19 (cases) throughout the South and Southwest of U.S. with uptick in the hospitalization rate. ... That has caused a little bit of concerns of another shutdown, which is benefiting gold," said Jeffrey Sica, founder ofCircle Squared Alternative Investments.
Spot gold was up 0.7% to $1,754.74 per ounce by 0225 GMT after hitting its highest since May 18. U.S. gold futures rose 1.1% to $1,771.40.
"General risk aversion is helping the market, we are seeing pressure on growth exposed currencies and on share markets. Overall, there are concerns about increasing infection rates," said Michael McCarthy, chief strategist at CMC Markets.
"The market is concerned about the outlook for growth and that of course is supportive for gold."
As per the WHO, there has a record addition in new coronavirus cases in a 24 hour period on Sunday of 183020 cases.'
Also, there are expectations that the unemployment levels in the US could again rise if corona spread is not curbed.
Dollar against a basket of currencies stood however steady at 97.35.
What influenced gold's safe haven on June 22, 2020?
Also the new security law in the Hong Kong are supporting gold price as there is pointed that Beijing will exercise powers in its administration.
Rising coronavirus infection
In India, rupee's drag against the greenback is also pushing gold prices higher, on Friday rupee closed at 76.19 per US dollar. This is despite abundant foreign flows.
Also, border tensions between China and India will continue to support gold price on the higher side.
Gold Price Forecast
Now that gold prices internationally trade above $1750 per ounce and if it closes above the levels of $1750 per ounce, there is expected a further pick-up and then there could be seen buying by under-invested hedge funds, which would push yellow-metal prices to $1800 per ounce.