New Delhi:On June 24, 2020, gold prices on the MCX again surged for August contract by Rs. 0.1% or Rs. 49 to Rs. 48281.00 per 10 gm. Silver on the other hand inched lower to trade at Rs. 48735 per kg. In the afternoon trade, gold rallied to a new high of Rs. 48420 mark as coronavirus and stimulus measures across the world weighed.
Gold prices in the previous session held on to prices as rupee inched higher against the dollar to levels below 76. On June 23, 2020, rupee against the greenback closed at 75.64 per US dollar.
Gold shares little relationship with other assets but as the dollar falters as ‘safe haven’, there is penchant for gold as a store of value. In the global markets, gold hit the highest since 2012 as dollar came down against a basket of currencies due to economic recovery hit.
Mnuchin, treasury secretary of the US economy, will come out of the recession due to coronavirus in the coming months. Also, point to recovery, US home sales for new homes increased for May month by 17% more than analyst expectations. Also, unemployment and retail sales figures point at a better stance.
Market participants however wait for the preliminary PMI number from top economies.
Nonetheless, what is weighing gold prices currently is the fear of second wave of coronavirus infection in the US, Beijing, Korea among others.
