Gold prices witnessed a steep surge of Rs 1,493 and breached the psychological Rs 96,000 per 10 grams-mark on Monday, driven by rising demand in the global market.
On the Multi Commodity Exchange (MCX), the yellow metal contracts for June delivery continuing the stellar run for the third straight day by climbing Rs 1,493 or 1.57 per cent to touch a fresh peak of Rs 96,747 per 10 grams, in the initial trade.
Later, it pulled back from the record rally to trade at Rs 1,346 or 1.41 per cent to Rs 96,600 per 10 grams with an open interest of 21,540 lots.
Similarly, the subsequent contract for August delivery rallied by Rs 1,464 or 1.53 per cent to hit a record high of Rs 97,360 per 10 grams on the MCX.
The Commodity markets were closed on Friday on account of Good Friday.
Analysts said the ongoing trade tensions between the United States and China have heightened global uncertainty, prompting investors to seek refuge in safe-haven assets.
As long as a resolution remains elusive between the world’s two largest economies, the bullish momentum in gold is likely to persist, they added.
In the global markets, gold futures hit a fresh high of USD 3,400.86 per ounce.
“Gold rose to establish a new record high, helped by a lower US dollar and safe-haven purchasing amid global trade worries,” Rahul Kalantri, Vice-President of commodities at Mehta Equities Ltd, said.
He said the US dollar sank to a two-year low after President Donald Trump started a series of attacks against the US Federal Reserve Chair Jerome Powell last Thursday, with his staff considering whether to replace Powell, a move that would have serious implications for the central bank’s independence and global markets.
“The ECB (European Central Bank) cuts interest rates by 25 basis points which supported gold prices.
“Gold is showing very high volatility and only any positive talks on US-China trade deal could limit gains of precious metals otherwise it could continue to show strength,” Kalantri added.
