Gold Prices Records A New High At Rs 47,700 Per 10 Gram, Silver Also Surges 3%

Both the metals rallied on Monday as Covid-19 tally continues to spike and the trade tensions between the US and China persists even as White House assures of mediation.

Representational Picture (AFP)

Gold prices in India: The precious metals gold and silver surged on Monday with MCX, June gold prices moving 0.7 per cent up to a new high of ₹47,700 per 10 gram and Silver futures rose nearly 3 per cent to 48,053 per kg. Both the metals rallied on Monday as Covid-19 tally continues to spike and trade tensions between the US and China persists amid the White House assurance of a mediation. In fact, the metal prices were supported by weak economic data from the US and Japan. India has eased lockdown restrictions even as the government extended the nationwide lockdown till May 31, allowing shops and markets including barber shops, salons and spas except those in malls to open with staggered timings ensuring strict measures of social distancing among others. Meanwhile, global markets, gold prices rallied to more than seven-year highs after the US Federal Reserve chief had warned that the US economy could drag through 2021 and dependent on the success of a vaccine. Spot gold on Monday rose about 1 per cent to $1,759.98, the highest since October 2012. Other precious metals including platinum also rose 0.7 per cent to $803.19, while silver rose 2 per cent to $16.96. Gold has rallied 16 per cent in 2020 on the back of historic pandemic that has bettered global economies and worries of a deeper global recession led to governments announcing stimulus packages. The latest US data has shown retail sales and factory output registering the biggest decline on record in April due to lockdown measures. The anticipation of the US interest plunging to negative has pushed holdings in gold-backed exchange-traded funds or ETFs at a record high. As an instrument for investment, gold is considered a safe haven and often seen as a hedge against inflation and currency debasement. The holdings of SPDR Gold Trust holdings, the world's largest gold-backed exchange-traded fund, rose 0.8 per cent to 1,113.78 tonnes on Friday. Another significant reason in the gold prices remain the increasing hostility between the US and China and worries about the next wave of coronavirus breakout making gold lucrative as a safe haven. (With inputs from agencies)