Gold prices firm up amid rising Iran-Israel tensions
Gold futures, maturing on June 5, 2024, stood at Rs 72,813 per 10 grams on the MCX, up Rs 536 or 0.74 per cent from the previous day’s close of Rs 72,277.
Bull run in domestic gold futures continued on Monday and hit an all-time high of Rs 54,199 per 10 gram, taking cues from international market which also touched a new record of $1,987.95 per ounce due to increasing COVID-19 cases across the globe.
The active October contract on the Multi-Commodity Exchange (MCX) touched a high of Rs 53,670 per 10 gram. At 12:07 pm, the MCX gold futures traded Rs 102 or 0.19 per cent higher at Rs 53,930 from its previous close.
While the physical demand for gold has remained low because of the higher prices, investors have poured money into avenues such as exchange-traded funds to benefit from the rally, therefore, gold refuses to die down.
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In the international market spot gold touched an all-time high of $1,987.95 per ounce earlier in the day.
Anuj Gupta, DVP, Commodities and Currencies Research, Angel Broking, said that it is more of an impact of the international trend which has been witnessed on the Indian futures market on Monday.
A recent report by the World Gold Council (WGC) showed that it is the record inflow into gold-backed ETFs (Exchange Traded Funds) which has caused the rally in the prices of the yellow metal. The consumer demand, however, has hit rock-bottom amid the pandemic.
Inflows into gold-backed ETFs (gold ETFs) accelerated in Q2, taking H1 inflows to a record-breaking 734 tonne. First half inflows surpassed the previous annual record from 2009 of 646 tonne and lifted global holdings to 3,621 tonne, the report said.
In line with the trend in gold futures, the September contract of silver on the MCX also touched a high of Rs 65,951 per kilogram. Currently, its trading at Rs 65,820 per kg, higher by Rs 836.
Apart from the investment and industrial demand, the supply concerns for silver have lifted its prices. Peru, the world’s second-largest silver producer, saw its mine supply fall by one-third due to the Covid-induced lockdowns.
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