Gold Pares Early Losses To Rise To Record High On Rupee Weakness

The yellow metal on the MCXin the morning trade fell by 0.19% or Rs. 91 to Rs. 46619.per 10 gm. But in the later part of trade as rupee weakened to new lows of 76.84 per US dollar, gold strengthened for the eight straight day to hit a high of Rs. 47099 per 10 gm.

In Wednesday's trade, gold continues its bullish rally for the seventh straight day and in Mumbai's bullion market jumped to Rs. 46,536 per 10g. The gains were to an extent backed by weakness in the Indian rupee which settled at near day's low of 76.44 per US dollar.

On the MCX, gold on April 15, 2020 ended higher by 0.92% or Rs. 424 at Rs. 46710 per 10gm. Silver also gained 0.63% or Rs. 275 to Rs. 44031 per kg.

At the global level, price of gold ticked up again as recession concerns again mounted due to grim US economic data. Nonetheless gains in the metal were capped due to gains in the dollar currency.

Spot gold gained 0.1 per cent to $1,717.20 per ounce by 0036 GMT. US gold futures were up 0.3 per cent at $1,745.70.

Retailers in the US witnessed the worst contraction in its sales as well as factory output declined sharply in March thus announcing that economy witnessed the biggest slump in the first quarter at its sharpest rates in decades.

Also, the UK is set to witness the worst recession in three centuries and the government is still not considering to open the economy there, though infection seems to peak out there.

A report given the current global landscape suggests that gold can touch levels of Rs. 50000- Rs. 50000 by the end of 2020.

Interestingly, in 2020 so far gold has gained Rs. 6794 or 17.31 percent and given a return of 15.19%.
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