Gold Price Reaches ₹45,800 per 10 Gram

Mumbai: Gold prices in India hit a record high in futures markets today amid higher global rates though physical buying remained suspended in domestic markets due to the 21-day lockdown. On MCX, June gold futures surged 1% to a new high of ₹45,800 per 10 gram. May silver futures rose 0.4% to ₹43,670 per kg. Gold prices in India include 12.5% import duty and 3% GST. India imports most of its gold requirement.

Gold may witness some profit-taking at higher levels but overall trend looks positive, SMC Global said in a note, adding that MCX gold has support at ₹45,000 while silver has support near ₹42,500. In global markets, gold rates were flat today but managed to hold on to near a one-month high. Worries over economy amid the coronavirus outbreak and fresh stimulus measures announced by US Federal Reserve last week helped support gold. Spot gold were flat at $1,686.82 per ounce. Among other precious metals, silver gained 0.5% to $15.40, while platinum eased 0.3% to $745.74.

Large scale quantitative easing measures taken by various central banks have lifted gold higher, says Hareesh V, head of commodity research at Geojit Financial Services. “Investors’ demand for safe havens due to fears of a global recession amid the negative economic impact of COVID 19 will also support the yellow metal. At the same time, moderate physical activities and a strong dollar may limit major gains,” he added. On technicals, he said, bullish momentum may continue as long as prices (London spot) stay above $1,642. “Intra-day resistance is seen at $1695, a direct break above the same would lift prices higher to $1705 or even more towards $1740 levels. Immediate downside turnaround point is seen at $1,620,” Mr Hareesh.