Gold price in the domestic commodity market rallied above 48K on Monday, tracking global cues amid concerns of the global economic recovery due to the resurgence of COVID-19 cases.
Significant rise in coronavirus cases in India after weeks of lockdown also kept demand for the risk-averse asset high in the domestic market.
On Multi Commodity Exchange, gold futures for the August month traded Rs 352 higher at 48,289 per 10 gm, also its day's high against the earlier close of 47,937. The metal hit an intraday low of 48,000, also its opening price today.
Globally, gold prices continued to climb today on concerns of a resurgence of coronavirus in China and US that encouraged investors to buy the yellow metal. Spot gold rose 0.7% to $1,754.74 per ounce, while US gold futures rose 1.1% to $1,771.40.
Meanwhile, gold-backed loans are becoming more popular with banks. Indians have been using gold recently to secure loans in the pandemic hit times as banks are otherwise increasingly unwilling to lend due to fear of the loan going bad.
Considered as an attractive investment during political or economic turmoil, commodity experts have kept their outlook for the bullion metal better than expected. Experts said international gold prices continued their upward ride and are looking at a breakout move shortly as fear of the second wave of a pandemic could lead to lockdown again.
The pandemic is accelerating globally with the World Health Organization reporting a record increase in worldwide coronavirus cases to 183,020 on Sunday.
Geojit Financial in its daily market report said, "Bullish momentum will continue and prices could look toward to the next targets of $1,780-1800 levels as it convincingly cleared the $1,745 mark. Meanwhile, prices need to break below $1,700 to negate the momentum and take prices lower."
For MCX gold August futures, the brokerage expects resistance at Rs 48,300-50,000 and support at Rs 46,550.