On Thursday, as international gold prices stayed near all-time, rates in India edged closer to Rs 56,000 per 10 grams. On MCX (Multi Commodity Exchange of India), gold futures hit an intraday high of Rs 55,593/10 grams and silver futures rose to Rs 74,948 per kg.
In the global market, spot gold was trading at $2,039.75 per ounce after hitting an all-time high of $2,055.10 on Wednesday. US gold futures rose 0.3 percent to $2,055.90. These rates were supported by a fall in the dollar index, which measures the US dollar against prominent global currencies, to a more than two-year low after US government bond prices fell on the prospect of increased supply in longer-dated debt.
The reported number of COVID-19 cases are nearing 19 million worldwide and 2 million in India. Death toll from the pandemic has surpassed 7 lakh as on Wednesday, with the United States, Brazil, India and Mexico leading the rise in fatalities.
The rapid surge in cases has dented hopes of a swift global economic rebound, and investors are rushing to park the funds in safe-haven assets such as gold, which has risen more than 34 percent so far this year.
The precious metal has become the best performing asset in 2020 on fears of a global recession. A blast in Beirut, where several people killed and thousands were injured, also lifted gold sentiment.
Experts believe that the rally in gold will continue and possibly silver could outshine yellow metal till the global economy shows strong recovery path.
"We continue to be bullish on gold with potential targets between Rs 65,000 to 68,000 per 10 grams and silver expected to reach anywhere between Rs 82,000-88,000 over the next 12-15-month period," Kishore Narne, head of Commodity & Currency at Motilal Oswal Financial Services said recently.