Gold Price Hits New High On MCX On Weaker Rupee, Equities

In the domestic markets, given the huge-order weakness in equities and sentiments in the rupee, gold once again has gained its safe-haven appeal. Gold futures on MCX surged 0.5% to a new high of Rs 44,700 per 10 grams on Thursday. Silver, however, has defied the run up in gold and is traded with minor losses of 0.16% at Rs. 47,298 per kg.

Gold Prices At Rs. 44670/10 Gm On MCX On Weak Rupee, Equities

In the previous session, gold futures for April delivery closed at Rs. 44,458 while opened at Rs. 44,574 on March 6, 2020 at the MCX.

Gold Prices in the International Market

In the global markets, the precious metal is set to hit its highest weekly gain since October 2011 with the coronavirus fears pushing investors to safe havens including gold.

Central Bank's Action is Another Triver for Gold's Rally

Given the economic fall out feared due to coronavirus outbreak which has now outnumbered in cases outside China, central banks across the world have come in action and reduced rates which though is not seen to curb the crisis. There has been dole outs of stimulus to restore the economy's revival in some of the countries.

Outlook for Gold

It is expected that at such high levels there can be some profit booking in the metal which can correct its price a tad bit, nonetheless given the unfavourable economic climate with jitters around coronavirus, gold is likely to scale higher in the short term. So, investors on every dip can consider taking a long call on the metal but with a long term investment horizon.

Further, more personal experts see gold to be included in one's portfolio for portfolio diversification and not for high returns.

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