Gold prices firm up amid rising Iran-Israel tensions
Gold futures, maturing on June 5, 2024, stood at Rs 72,813 per 10 grams on the MCX, up Rs 536 or 0.74 per cent from the previous day’s close of Rs 72,277.
Gold futures on the Multi-Commodity Exchange (MCX) soared to a new high of Rs 55,000 on Wednesday amid the global economic uncertainty and in tandem with international prices.
The MCX gold contract for the month of October reached an all-time high of Rs 54,910 per 10 gram. It is currently trading at Rs 54,848, higher by Rs 297 or 0.54 per cent from its previous close.
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Spot gold in the international market hit new highs on safe-haven demand, on weaker dollar and news for another round of stimulus aimed to revive the pandemic-hit economy. After hitting a record high earlier in the day, it traded at $2,014.41 per ounce during the afternoon.
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A recent report by the World Gold Council (WGC) showed that it is the record inflow into gold-backed ETFs (Exchange Traded Funds) which has caused the rally in the prices of the yellow metal. The consumer demand, however, has hit rock-bottom amid the pandemic.
Inflows into gold-backed ETFs (gold ETFs) accelerated in Q2, taking H1 inflows to a record-breaking 734 tonne. First half inflows surpassed the previous annual record from 2009 of 646 tonne and lifted global holdings to 3,621 tonne, the report said.
In line with the trend in gold futures, the September contract of silver on the MCX also touched a high of Rs 70,223.00 per kilogram. Currently, it is trading at Rs 70,129 per kg, higher by Rs 332.00 from its previous close.
Apart from pickup in investment and industrial demand, the supply concerns for silver have lifted its prices. Peru, the world’s second-largest silver producer, saw itsmine supply fall by one-third due to the Covid-induced lockdowns.
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