Gold price today: Yellow metal trades near record high as COVID-19 cases rise

Gold rates today in India: Gold prices in India were trading near record highs in the domestic commodity market on Monday amid a spike in coronavirus cases worldwide.

Concerns over the economic impact of rising coronavirus infections in many countries, especially in the two largest economies-US and China have driven investment inflows into safe-haven assets like gold.

On MCX, gold futures prices were up by Rs 225 to Rs 49,088 per 10 gram, after hitting a lifetime high of Rs 49,348 in the previous week.

The precious metal today opened at Rs 49,046 per 10 gm and also touched a day's low of Rs 48,935 per 10 gm against the previous closing of 48,863 per 10 gm.

From March lows of Rs 38,500 per 10 gram, when the coronavirus pandemic started to spread, yellow metal prices surged over 25% to a record high in July 2020 amid rally in overseas prices of the bullion metal. Experts suggest that the yellow metal is expected to touch up to Rs 55,000 per 10 grams by the end of 2020.

Overseas, spot gold price crossed over its eight-year high at $1,800 per ounce hit last Tuesday and traded 0.1% higher at $1,800.71 per ounce, as investors ran for safety amid Covid-19 crisis.

The price rise of the yellow metal has continued unabated even though more and more countries are easing lockdown restrictions. Besides, worries of the second wave of COVID-19, tensions on India-China borders, US-China trade deal and uncertainties around the Hong Kong issue have kept the demand for safe-haven asset high.

Further, even after the $1,800 breakout, experts see gold prices continuing their upward ride as fear of the second wave of a pandemic could lead to lockdown again. Value of gold assumes more important during times of recession and uncertainty.

In terms of Spot gold's technical outlook, experts suggest prices will continue to edge higher as long as they stay above $1770.

Commenting on the surge in gold prices, Geojit Financial in market glance report said,"If prices hold above $1770 expect continuation of bullish bias in the counter. However, major resistance is seen at $1832 followed by $1882 levels. An unexpected drop below $1720 could negate the buying momentum and take prices lower."

For MCX Gold Futures, the brokerage estimated the resistance at Rs 49,350 and support at Rs 47,400.

Gold price in India edged lower today after breaching the Rs 50,000 per 10gm mark in the domestic retail market. While, price of 22-carat gold in New Delhi rose to Rs 47,820 per 10 gram, the rate was Rs 48,000 in Mumbai, according to the Good Returns website. In Chennai, the 22-carat metal traded at Rs 46,900.

Worldwide, the number of cases linked to the Covid-19 disease has crossed 1.28 crore and the death toll has topped 5.68 lakh. In India, the death toll rose to 23,174 and the number of infections spiked to 8,78,254.

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