Home / Markets / Commodities /  Gold prices hit another landmark, silver rates surge 15% in just 5 days

Gold prices in India continued their record-breaking rally this week with rates piercing through the 51,000 barrier. On MCX, August gold futures settled 0.6% higher on Friday at 51,010 per 10 gram after hitting a new high of 51,184 earlier in the session, tracking a rally in global markets. Silver futures on MCX edged higher to finish at 61,221 a kg. On a weekly basis, gold rose about 4% while silver surged about 15%.

In global markets, gold crossed the $1,900 per ounce ceiling on Friday for the first time since 2011. A worsening US-China row has added to concerns about global economy that is already grappling with a resurgence in coronavirus cases in many countries.

In yet another escalation in US-China relations, Beijing ordered Washington to close its consulate in the city of Chengdu after US asked China to close its Houston consulate.

Also boosting gold's safe-haven appeal is a continuous surge in COVID-19 cases across the world that has infected over 1.57 crore people and claimed 6.3 lakh lives.

A weak dollar has also help support the gold's rally. A weaker dollar usually spurs buying of dollar-priced commodities because they become cheaper for holders of other currencies.

"Gold prices have been driven higher by an escalation in US-China tensions. Investors are also looking for a hedge against possible inflation as hopes for more stimulus measures grow. Key focus would be Fed monetary policy meet next week," said Jigar Trivedi, research analyst at Anand Rathi Shares & Stock Brokers.

In India, gold prices have surged over 30% so far this year. Analysts say that silver has surged on hopes of a rebound in industrial activity and some investors perceiving silver as being undervalued compared to gold.

Indicative of the safe-haven demand for gold, global holdings of gold-backed exchange fund or gold ETFs have hit record highs. (With Agency Inputs)

Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Post your comment

Recommended For You

Trending Stocks

Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout