Gold futures on MCX recede after touching record high

Mumbai, April 15 (IANS) Gold futures on the Multi-Commodity Exchange (MCX) reversed gains after touching its lifetime high level of Rs 46,785 per 10 gram earlier in the day.

Prices of gold have of late skyrocketed due to the uncertainty in the global financial markets amidst the coronavirus crisis.

Anuj Gupta of Angel Broking noted that gold touched its life time high on the MCX June contract and spot gold is trading around $ 1720 which is a 8 year high.

“Safe haven demand and weakness in dollar supports the gold prices. Although the lockdown situation also increased the demand of investment in safe haven asset class product. Low interest rate and global growth forecast cut down by IMF provide extra fuel to gold prices,” Gupta said.

He said that gold may touch Rs 49,000-Rs 50,000 on MCX and in the international market it may touch $1780-$1800 soon.

Currently, however, the June contract of gold on MCX is at Rs 46,259 per 10 gram, down by just 0.06 per cent from its previous close.

Spot gold trade is shut in India amid the nationwide lockdown, but with the extension of the lockdown and further economic concerns and uncertainty in other asset classes, investors are likely to move more towards gold and futures of the yellow metal are likely to surge further, analysts said.

–IANS

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