Gold Price In India Run Up For Third-Straight Day; Nears Rs. 47,000/10 gm

Gold prices in India continue their run-up for the third straight day and nears record high price. In the futures market, gold for delivery in June on the MCX was last trading higher by 0.42% or Rs. 196 at Rs. 46850, while it touched a high of Rs. 46948per 10 gm.

In April, gold prices recorded a life time high of Rs. 47327 per 10 gm.

In the international market, gold prices continue to soar on another possible stimulus in the US and worsening US-China tensions over the virus. Spot gold climbed 0.1% to $1730.56 per ounce by 0142 GMT. In the earlier session, gold scaled to a three-week high price of $1,735.96.US gold futures climbed 0.1% to $1,742.30.

Factors fuelling the run-up in gold:

1. Fear of second wave of coronavirus infection as economies begin to reopen after extended lockdown
2. Additional stimulus measures by central banks
3. Heightening of US-China tensions
4. Weak economic data

Nonetheless the gains remain capped owing to strength in the US dollar and as there have been seen some recovery in the US equity markets.

Back home, the second issue of the sovereign gold bond 2020-21 that opened on Monday for subscription will close today. The issue price for the latest scheme has been fixed at Rs. 4590 per gram.

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