As the April-June quarter comes to end, international gold prices are close to their highest price in eight years and the metal is set to post its best quarterly gain in over four years, according to a Reuters report. Since March, when COVID-19 was declared a pandemic, investors have been seeking refuge in the safe-haven asset, largely responsible for the price rally.
Spot gold touched a high of $1,776.60 an ounce on Tuesday at the time of writing this report (with 8 more hours left for international markets to close), just a little more than $2 away from the a near eight-year high of $1,779.06 hit last week.
In India, gold futures on MCX (Multi Commodity Exchange of India) touched an intraday high of Rs 48,418 per 10 grams on Tuesday, near its all-time high of Rs 48,589 seen on 24 June.
The June month marks the third straight month of gains for the yellow metal and has surged more than 12 percent in this quarter.
An increase in the number of COVID-19 infection cases in large countries like the US, India and Brazil have fueled demand for the safe-haven metal. On Tuesday, escalating tensions with the US and the European Union, China's parliament passed a landmark national security
legislation for Hong Kong.
On the other hand, demand in the physical bullion market, especially in top consumer China, continued to be weak, Commerzbank said, a Reuters report said.
On the technical front, a break above $1,775-80 for spot gold could prompt a rally toward the $1,800 level, said Afshin Nabavi, senior vice president at precious metals trader MKS SA to Reuters.