Also Read: Coronavirus: India Sees Biggest Single Day Spike With Nearly 16k Fresh Cases; Total Now Tops 4.5 Lakh
Domestic gold prices are in tandem with prices in the global market as the yellow metal rose to its highest level in almost eight years. In one of the biggest single-day spikes of coronavirus cases in India, almost 16k fresh cases have been recorded in the last 24 hours taking the total to 4,40,215. The number of active cases at present has increased to 183022. With 465 deaths in a single day, the fatalities caused by Covid-19 has also risen to 14,476.
The 22-carat gold is about Rs 46,800 per 10 gram in Delhi, while the retail price of 24-carat is Rs 48,000 on Wednesday. In Chennai it is Rs 46,100 for 22-carat while price of 24-carat is at 50,390. In Mumbai,22-carat is selling for Rs 46,650 and the price for 24-carat has inched up to Rs 47,650, according to GoodReturns.in.
Analysts opined that rising cases of coronavirus cases across the world and expectations of more stimulus led to the demand for gold. Gold is used as a safe investment during times of political and financial uncertainty.
According to Mint, spot gold was up 0.2 per cent at $1,769.59 per ounce. During the early session, it touched $1,773, its highest level since late 2012. US gold futures rose 0.4 per cent to $1,789.20.
Meanwhile, US Treasury Secretary Steven Mnuchin hinted at the next stimulus bill which will focus on employing people and may consider a further delay of the tax filing deadline.
The yellow metal funds support if the US dollar remains weak. The dollar index hovered near a more than one-week low hit in the previous session.
The investment demand continues to be on the rise as the SPDR Gold Trust, the world's largest gold-backed ETF or exchange-traded fund, rose 0.28 per cent to 1,169.25 tonnes on Tuesday.