Gold Rates Up 30% This Year in India | Key Factors That Could Influence Prices
- by Satakshi-Gauri
- Jul 24, 2020 10:41
Gold prices in India have been on a record-breaking streak in India, hitting a high of ₹50,700 per 10 gram in futures trade in India. On the other hand, silver has rallied strongly over the past few days, hitting a multi-year high of ₹62,400 per kg on MCX. Gold prices in India are up about 30% so far this year amid a global rally. Analysts say that rising coronavirus cases, US-China tensions, hopes of fresh stimulus, and a weak dollar have supported the rally in the yellow metal."Gold continues to hit new highs supported by weaker US dollar, strong investor buying, increased geopolitical tensions, rising virus cases, and hopes of additional stimulus measures. The US dollar index has slumped to March lows weighed down by reduced safe-haven buying and diverging virus and economic situation in US and Europe," Kotak Securities said in a note. In global markets, spot gold was 0.6% higher at $1,882.17 per ounce, its highest level in about nine years.
Silver traded around $22.84 per ounce. European Union leaders earlier this week agreed on a massive stimulus of over $850 billion while US policymakers are struggling to reach a consensus on additional stimulus measures. In addition," US virus cases are increasing at a much faster pace than European nations," says the brokerage on the dollar's weakness. ETF investors continue to pour money into gold amid expectations that governments may continue to infuse more liquidity to boost economic growth. Indicative of investor sentiment, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, rose 0.4% to 1,225.01 tonnes on Wednesday, its highest since March 2013. On the geopolitical front, tensions between the US and China rose further after Washington US gave China until Friday to close its consulate in Houston.
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