Gold prices scale fresh record high, top Rs 56,000 mark

NEW DELHI: Gold prices extended gains on Friday to scale another peak, tracking the trend in the global market and on rising worries over fast spreading COVID-19 outbreaks. Silver also jumped to record highs crossing Rs 77,000 level.

India has reported over 20 lakh coronavirus cases by now with more than 41,600 deaths. Gold tends to gain when interest rates are low and political and economic uncertainties are high.

Gold futures on MCX were up 0.39 per cent or Rs 220 at Rs 56,065 per 10 grams--hovering at record highs. Silver futures added 1.53 per cent or Rs 1,163 to Rs 77,215 per kg.



Gold prices rose by Rs 225 to Rs 56,590 per 10 gram in the national capital on Thursday, in line with a strong rally in international price of the precious metal, according to HDFC Securities. Silver prices also witnessed a strong upward trend, as it jumped Rs 1,932 to Rs 75,755 per kg.

"The liquidity push by Central Banks across the globe has been a deciding factor for premium in gold prices as the pandemic continues to ravage global economy. The easy money policy is resulting in investors chasing higher yields on asset classes which are considered to be safe in times of uncertainty, and nothing like gold, the safe haven asset which has historically been a go to investment for investors," said Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking.

Unless, global economy starts its recovery path, precious metals will continue to shine for the rest of 2020, he added.

Globally, gold continued its rally, with spot prices rising 0.32 per cent and striking a fresh record of $2,072.4951 per ounce.

Data showed U.S. jobless claims fell last week, but a staggering 31.3 million people were receiving unemployment checks in mid-July, as new infections battered the economy.

Gold has rallied more than 35 per cent this year as it is considered an asset that should hold its value while the pandemic and money printing by central banks erode the value of others.

Markets awaited further policy response as U.S. Democratic leaders and White House officials continued their talks to try to hash out a next wave of relief to help the economy.