Gold hits new record; silver surges to Rs 49,190

On MCX, August gold futures rose Rs 333 or 0.7% to Rs 48,289 per 10 gram in early trade. Silver futures also rose by Rs 554 or 1.2% to Rs 49,190 per kg.

Hyderabad: Gold prices hit a fresh record high on Monday. On MCX, August gold futures rose Rs 333 or 0.7% to Rs 48,289 per 10 gram in early trade.

Silver futures on MCX also rose by Rs 554 or 1.2% to Rs 49,190 per kg.

In National Capital Delhi, gold prices went up by Rs 20 to Rs 46,780. Price of 10 grams of 24-carat gold went up by Rs 10 to Rs 47,970.

Gold prices in India saw an increase following the jump in international markets. In global markets, gold prices on Monday hit a one-month high as a surge in coronavirus cases dented investor sentiment towards riskier assets.

Speaking to ETV Bharat Satish Agarwal, Gold Commodity Expert, said "Increase in coronavirus cases is the main reason for present rise in gold prices. Besides this, Global recession, India- China tensions, instability in US-China relations, Low-interest rates are also affecting. Till the time we get the vaccine, the prices are going to go up. We are expecting vaccine, maybe let's say in another year, Prices will go till Rs. 60,000 Minimum."

"If the vaccine comes in, the recession will come down, interest rates will go up, stability in markets will come, a lot of things will happen. With the vaccine, the gold price will definitely come down. Till we don't get the vaccine, it will go up. If we get the vaccine, prices may come down to 45K," he added.

Spot gold was up 0.7 per cent to USD 1,754.74 per ounce by 0225 GMT after hitting its highest since May 18.

Off late, the prices of the yellow metal has surged amid the rising number of coronavirus cases and the uncertainty of the global economy.

Investors tend to move towards gold during uncertain times, as it is considered a safe haven asset compared to other asset classes such as stock markets and bonds.

Gold prices have also been lifted by a wall of cash from governments and central banks around the world as they continue to provide much-needed support to pandemic-hit economies. Accordingly, gold prices have continued to hit new highs since early April.

The gold prices have risen from a level of Rs 38,200 (10 gm, 22 karat gold) and Rs 39,200 (10 gm, 24 karat gold) at the beginning of current calendar year.