6 Factors That Can Drive Gold To Bounce Back To Fresh Record Highs

Gold prices in the futures market on the MCX traded marginally lower by Rs. 42 to Rs.44818 per 10 gm. This is against the trend in international pricing of gold where it remained steady owing to gains in the dollar, though some support was offered due to easing of US treasury yields.

In the international markets, spot gold saw marginal change in pricing at $1,734.81 per ounce by 0130 GMT. U.S. gold futures were steady at $1,732.90 per ounce.

Amid extended lockdowns in Europe, dollar is fast gaining appeal as a preferred safe haven and has risen to a four-month high against the Euro today.

Factors that will support gold in rebounding to fresh highs

Gold has seen a sharp correction of over 20% ever since progress on vaccine for Covid 19 virus has been made and different economies iterated that recovery from the Covid 19 led downturn has been faster than expected, fuelling investors' risk appetite.

But now bullish outlook on gold is held on the following premises:

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