Gold price in domestic commodity markets rose to historical highs after breaching Rs 47K mark per 10 gram on Thursday, tracking bullishness from overseas.
Gold May futures on Multi Commodity Exchange (MCX), rose 1% higher to an all-time high of Rs 47,170, while June Futures made a high of Rs 47,216.00, rising 1.1%. The price of yellow metal on MCX has been surging to record highs since Monday amid coronavirus related economic worries worldwide.
In international markets, spot gold prices also gained upwards as downbeat US weak U.S. retail and manufacturing data heightened fears of a deeper global recession due to the virus outbreak. Overseas, spot gold rose 0.4% to $1,722.02 per ounce, while US gold futures rose 0.9% to $1,755.50.
The panic sentiment in financial markets due to the pandemic since early 2020 has pushed the price of the yellow metal higher. Since the mid-December lows of $1,350, gold prices have risen almost 30%, when China was slowly becoming a hotspot for coronavirus cases.
As per commodity traders, global recession worries limited the downfall in bullion metal and demand outlook for the precious metal looks quite strong.
Angel broking said MCX gold prices are expected to trade upwards today. It later added," Rising worries of a possible recession might support the bullion metal prices. However, appreciation in the US dollar on safe-haven demand might limit the gains for gold."
As gold is seen as a safe investment during volatile times, experts suggest that the precious metal may witness strong upside momentum in the near term as well.
On gold's near term outlook, Anuj Gupta-DVP-Commodities & Currencies Research, Angel Broking said, "We are expecting this rally may continue and gold may test Rs 49,000 to Rs 50,000 on MCX and in international market, it may test $1780 to $1800 soon."
As per technical levels suggested by Angel Broking, Gold MCX June Futures supports levels are 46,100, and 46,450, while its resistance lies around 47,100 and 47,450. For Spot Gold, currently, 1,692 and 1,704 are the suggested support levels while 1,728 and 1,741 are the resistance zone.