Gold price hits historic Rs 50,000 mark for 10 grams amid COVID-19 pandemic

In a new high Gold prices zoomed to Rs 50,405 per 10 grams. According to the commodities experts, the rise in this precious metal is due to the uncertainty in the global economy, weak US economic outlook and the US dollar. Also, a second wave of Coronavirus is expected to sweep the US and other countries and this is adding to the surge in prices. Speaking on the reason for the rise in gold price to a record high, Anuj Gupta, Deputy Vice President at Angel Broking said, "The US Fed has already given weak economic outlook for the global economy and yesterday, IMF has also given weak global economic outlook and this has triggered fresh buying of gold globally."

Gupta said that there is around Rs 1800 to Rs 1900 premium being applied in the Delhi retail gold market if compared with its price at the Multi Commodity Exchange (MCX). "Since, MCX gold is expected to hit Rs 49,000 per 10 gm by the end of this week, we can expect gold price in Delhi to hit Rs 51,000 per 10 gm levels during this period," said Gupta. On international triggers that matter for gold price in next few trade sessions, Amit Sajeja, Associate Vice President at Motilal Oswal said, "In international markets, gold price has sustained above $1,750 per ounce levels, which means it has broken its previous range of $1,690 per ounce to $1,750 per ounce mark." Sajeja said that now spot gold is trading in the range of $1,750 per ounce to $1,815 per ounce levels.