Gold price today: Price of gold gained hit new lifetime high in Indian commodity market on Wednesday, in line with gains overseas, as equities worldwide reversed the trend and fell marginally into the red. Gold prices surpassed Rs 50K mark and hit an all-time high of Rs 50,060/10 gm today on MCX, tracking heightened buying sentiment from global markets.
Gold futures on Multi Commodity Exchange were trading 533 points higher at Rs 50,060 per 10 gm for the very first time as against the previous close of Rs 49,527 per 10 gm. Gold earlier this month had touched a lifetime high of Rs 49,348 per 10 gm. Gold August Futures today touched an intraday as well as all-time high of Rs 50,060 and a low of Rs 49,852 today, after opening at 49,931 per 10 gm.
Silver futures in the domestic market too gained 5.47% or 3,648 to trade at Rs 60,990 per kg today, after touching an intra day high of Rs 60,998 per kg.
Overseas, spot gold prices rose 1.3% to $1,865.81 an ounce, after making a fresh nine-year high of $1,865.35. Comex gold in international markets traded 0.85% higher at $1,858 per ounce today.
Expectations of more stimulus measures, a weak dollar and continued rise in cases of coronavirus infections on a global scale have kept the demand for gold high.
Besides this, escalating tensions between the US and China have further raised demand for the risk-averse commodity.
The spread of coronavirus in the United States and other hotspots heightened concerns that economic recovery is far from assured in the near term and led investors to flee riskier equities for the safe-haven metals.
Central banks globally committing to an unprecedented level of money-printing have kept the demand for the yellow metal high in overseas commodity markets. The yellow metal, widely known as an instrument to hedge against rising prices due to inflation and currency debasement has seen high demand recently.
Gold and silver prices in the commodity market have been scaling fresh highs as traders shunned risk and sought a safe haven during coronavirus crisis.
In India, investors' focus is back to surging domestic coronavirus cases that neared 1.2 million. Worldwide, there are 15,097,649 confirmed cases and 619,558 deaths from the coronavirus COVID-19 outbreak.
On MCX Gold's near term outlook, Kishore Narne, Associate Director & Head, Commodities & Currencies, Motilal Oswal Financial Services said," We have been bullish on gold for the last couple of years and the view has played out very well, and two quarters back in Dec'19, we have revised our targets from Rs 42,000/10gms to Rs 65,000/10 Gms in 18-24 months. We expect gold to keep up the momentum with occasional corrections, and we suggest investors to use every dip to keep buying gold over medium to long term targets of Rs 65,000"