Coronavirus fears push gold price to record high of Rs 48,848

Gold prices in India hit fresh record high on Wednesday tracking bullish trend in international markets. Concerns over economic impact of rising coronavirus infections have driven investment inflows into safe-haven assets like gold.

Gold August Futures on Multi Commodity Exchange traded higher by Rs 54 at 48,816 today, after rising to the intraday high of Rs 48,848 per 10 gm against the previous close of Rs 48,762.  The precious metal earlier opened at Rs 48,814 per 10 gm and also touched a day's low of Rs 48,758 per 10 gm.

Traders said India recording highest spike in a day despite weeks of lockdown has also led to the demand for the risk-averse asset in the domestic market.

Considered as an attractive investment during political or economic turmoil, commodity experts are upbeat over the outlook for bullion.

In global markets, gold prices edged closer to near an eight-year high today due to the recent spike in coronavirus cases in many countries.

Overseas, Spot gold rose 0.2% at $1,783.52 per ounce today, after hitting highest level since early October 2012 at $1,785.46 on Tuesday. US gold futures rose 0.1% to $1,802.20.

Experts said international gold prices continued their upward ride and are looking at a breakout move shortly as fear of the second wave of a pandemic could lead to lockdown again.

Commenting over the recent trend of the bullion metal, Anuj Gupta, DVP Commodities and Currencies Research, Angel Broking said," Gold is trading at its lifetime high at 48,829 levels in the domestic market and at 12 year- high at $1785 per ounce. Rising coronavirus cases and increase in geopolitical tension between US, China, India and Iran are also supportive for bullions. Lower growth forecasts provide fuel to the bullions. We expect bullions may trade positive in the short term.

Expressing views over the precious metal's near term technical outlook, he added," For intraday perspective traders can go for buy in Gold at 48,600 to 48,700 levels with the stop loss of 48300 levels and for the target of 49,100."

Worldwide, there are currently 10,591,470 confirmed cases and 514,050 deaths from the coronavirus COVID-19 outbreak.

India registered the highest single-day COVID-19 deaths at 507 on Wednesday with 18,653 new infections, taking the total tally to 5,85,493, according to the Union Health Ministry data.