Gold pricestoday spiked by as much as Rs. 332 to day's high of Rs. 46,499 per 10 gm in the futures market in Thursday's trade (April 23, 2020). The gains have come despite weakness in the global rates as well as rebound in equities Also, firmness in the dollar which has scaled to over 2-week high is weighing on the price of the bullion.
On Wednesday, stimulus hopes propelled the yellow metal to gain as much as 2% or Rs. 842, which again traded above Rs. 46000 per 10 gm.
In the global markets, buoyed by strength in equities market and firmness seen in the dollar, the yellow metal gold slipped in price, nonetheless stimulus measures kept huge losses under check.
Bullish Trend In Gold Can Not Be Ruled Out; Global Stimulus Fuelling Price Rise
"Gold is in a bull market. You'll be hard pressed to find something else that has this type of price action and this trend going on right now so you naturally have people gravitating towards it", said Michael Matousek, head trader at US Global Investors.
Spot gold declined 0.2% to $1,710.23 per ounce, in the previous session gold jumped by as much as 1.9%. U.S. gold futures slipped 0.2% to $1,735.30.
Why stimulus package supports gold price?
It is to be noted that global stimulus package being considered across economies supports strengthening in the gold price as it is seen as a hedge against inflation as well as currency devaluation.
US Stimulus Package
Today, the US House of Representative is likely to pass a nearly $500 billion relief package to aid the economy devastated by the Covid 19 pandemic.