Prices of precious metals, gold and silver surged on Monday, backed by the positivity in the international markets after US President Donald Trump signed a much-awaited coronavirus relief and stimulus package into law.
On the Multi Commodity Exchange, gold contracts for February are currently trading at Rs 50,318 per 10 gram, higher by Rs 245 or 0.49 per cent from its previous close.
On Sunday, Trump signed the $2.3 trillion package after earlier suggesting that he would block the bill.
The yellow metal has gained more than 20 per cent both in the international and domestic markets in 2020, largely on the back of the pandemic-induced uncertainties and its appeal as a hedge against inflation amid the huge stimulus measures globally to counter the impact of Covid-19.
Analysts are of the view that the stimulus packages announced globally, including the latest in the US would lead to inflationary concerns, which may, in turn, make investors flock towards safe-haven assets such as gold.
In line with gold, futures of silver also surged on Monday.
The March contract of silver on the MCX is currently trading at Rs 68,877 per kg, higher by Rs 1,368 or 2.03 per cent from its previous close.
According to market experts, this bull-run in the precious metals would continue in 2021