After one day's close, gold prices on the MCX again surged by 0.57% to record day's high price of Rs. 46552.00. On the MCX, gold futures for June opened at Rs. 46,445.00
On Monday, gold on the MCX closed at Rs. 46286.00 or 992.00 , up 2.19%.
In the global markets, in a span of just 4-weeks gold futures has again recovered, when it for some time to saw forced selling for losses made in other assets, and skyrocketed close to $1800 per ounce.
On Tuesday, gold in the global markets jumped 2% to hit their highest price in 7.5 years.
Spot gold gained 0.8% at $1,727.55 per ounce by 11:07 a.m. EDT (1507 GMT), having earlier jumped as much as 1.9% to $1,746.50.
U.S. gold futures rose 0.1% to $1,762.10, after hitting their highest level since February 2013 at $1,788.80.
Another factor triggering the price of gold higher is the huge inflows in gold ETFs which has now scaled past 1000 tons, the highest since mid 2013.
Also, global firms including UBS Group AG have raise their targets for the metal and as the earnings season begin now, investors will further be able to make out how the overall quarter seems to pan out amid the coornavirus pandemic.
Gold spot market has been closed for some time now in India due to the nationwide pandemic which has been further extended to May 3.
Also, there has been news report that because of the curtailment in timings for the markets, daily turnover on the MCX has been declined by 77%.
Outlook for yellow-precious metal in India
Even as physical demand for the metal has bottomed due to high prices and lockdown, what is seen is there is speculation bets on the metal. And imports have also squeezed to 12.5 tonnes in March. Also, gold dealers have seen scrap sales of gold which is only set to rise given the current high prices.