Gold price hits historic Rs 50,000 mark! Fear rules the world! This is what you must know now
Gold price today in Delhi retail bullion market has crossed the historic Rs 50,000 mark to hit Rs 50,405 per 10 gm level.
Gold price today in Delhi retail bullion market has crossed the historic Rs 50,000 mark to hit Rs 50,405 per 10 gm level. Fear is ruling the world and it is having its impact on India too. According to the commodities experts, the rise in this precious metal is due to the uncertainty in the global economy, weak US economic outlook and the US dollar. Also, a second wave of Coronavirus is expected to sweep the US and other countries and this is adding to the surge in prices.The cumulative result is that investors are rushing towards safe haven investments and that is what gold is all about - the yellow metal provides safety as it retains its value better than all other asset classes. This has helped it to remain an investors' dream investment. And yes, prices are expected to surge further - expert says it may hit Rs 51,000 in Delhi!
Speaking on the reason for the rise in gold price to a record high, Anuj Gupta, Deputy Vice President at Angel Broking said, "The US Fed has already given weak economic outlook for the global economy and yesterday, IMF has also given weak global economic outlook and this has triggered fresh buying of gold globally."
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Gupta said that there is around Rs 1800 to Rs 1900 premium being applied in the Delhi retail gold market if compared with its price at the Multi Commodity Exchange (MCX). "Since, MCX gold is expected to hit Rs 49,000 per 10 gm by the end of this week, we can expect gold price in Delhi to hit Rs 51,000 per 10 gm levels during this period," said Gupta.
On international triggers that matter for gold price in next few trade sessions, Amit Sajeja, Associate Vice President at Motilal Oswal said, "In international markets, gold price has sustained above $1,750 per ounce levels, which means it has broken its previous range of $1,690 per ounce to $1,750 per ounce mark." Sajeja said that now spot gold is trading in the range of $1,750 per ounce to $1,815 per ounce levels.
However, Anuj Gupta said that there can be some profit booking as and when gold reaches near $1,790 per ounce levels in the international markets.
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