NEW DELHI: Gold prices scaled a new high on Wednesday and hit an all-time high of Rs 55,390 per 10 gram as a weak dollar and falling bond yields polished its safe-haven appeal. On the Multi Commodity Exchange of India Limited, the gold futures hit a record of Rs 55,390 per 10 gram after it rose 1.35%. Silver futures, too, surged 4.3% to Rs 72,850 per kg.
In the previous session, gold futures on MCX rallied about Rs 900 or 1.7%, hitting Rs 54,612 at intraday high, while silver surged Rs 4,200 or 6.4%. “Investors continue to remain buyers in safe-haven gold as they expect the metal will hold its value better than other assets as fallout from Covid-19 cripples the global economy,” said Sriram Iyer, Senior Research Analyst at Reliance Securities. Expectations of more stimulus also boosted the safe-haven demand of non-yielding gold.
Many experts think gold will rally further towards Rs 65,000 level over the next 12-15 months. “An aggressive stance of central banks to push unprecedented amounts of liquidity and keeping interest rates lower provide a convincing fundamental backdrop for continuation up-trend in both precious metals,” said Kishore Narne, Head - Commodity & Currency, Motilal Oswal Financial Services.