Gold Rallies Rs. 600/10 gm On Rupee Weakness, Covid-19 Posing Evolving Risk

After Friday's steep fall to the tune of Rs. 1000 on the MCX, gold price in the domestic markets has again surged by as much as Rs. 511 or 1.23% to Rs.41908 per 10 gm. Silver too in line has rallied by a whopping Rs. 800 or 1.82% to Rs. 44778 per kg.

Today's rally is again on the yellow metal gaining appeal as a safe haven as against other investment avenues including equities which toppled heavily on Friday amid rising risk of recession hitting global markets. China's factory activity which came at its lowest also raised the concerns.

Rupee's Weakness Keeps the Metal Soaring in Price

Also, the rupee's depreciation to six-month low levels of beyond 72 mark are also spurring gains in the metal.

Rate Cut By Major Central Banks On The Anvil to Spur Gains In Gold

Moreover, further loosening of interest rates as anticipated to boost up the economy will also add to the gains in the yellow metal. A Friday's statement by the Federal Reserve led Goldman Sachs to assume of rate cut by the US central bank rather aggressively. Low interest rates augur well for gold as opportunity cost for holding non-interest yielding bullion reduces.

Global Gold Price

Spot gold price also gained to $1602.9 per ounce, rising 1.2%. And the US gold futures surged to $1597.

What should Investor's Call Be On Gold?

If gold looks appealing to you as an investment do park in your surplus for long term as the currently rally may be short-lived and may again see consolidation in the metal in a range.

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