Gold prices shine again today, at Rs 50,194 per 10 gram

Gold prices have been touching skies this entire year due to the coronavirus pandemic that shook the economy.

Gold price in Delhi rose from Rs 49,812 per 10 gram on Thursday to Rs 50,194 on Friday. The price of silver in the capital rose from Rs 66, 191 per kilogram on Thursday to Rs 66,526 on Friday, according to the India Bullion and Jewelers Association website. Gold prices have been touching skies this entire year due to the coronavirus pandemic that shook the economy. A spiralling dollar also caused this increase in the prices of precious metals.

The prices of bullion saw a jump of over 1%, a one-month high on Thursday on the back of Covid relief stimulus and the US Fed’s promise to infuse more cash into the economy keeping interest rates lower.(File photo)

The prices of bullion saw a jump of over 1%, a one-month high on Thursday on the back of Covid relief stimulus and the US Fed’s promise to infuse more cash into the economy keeping interest rates lower. Silver too witnessed a 2.6% rise.

“A combination of an additional stimulus package along with additional bond buying and asset purchases from the Fed has clearly driven gold and silver prices higher,” David Meger, director of metals trading at High Ridge Futures said, according to Reuters. Meger added that an additional stimulus is pushing the dollar as more cash is pumped into the economy.

Reuters reported that lawmakers in the US are planning to roll out a $900 billion coronavirus relief bill by Friday in hope of recovery by keeping the interest rates at bay that led to buoyancy in prices of the bullion and troughing the dollar. “The gold market seems to be solely focused on the fact that there’s a stimulus deal and that we’re getting close to it,” Bob Haberkorn, senior market strategist at RJO Futures, was quoted as saying by Reuters.

The safe investments of precious metals often considered as a fence against inflation increased around 24 per cent this year due to the coronavirus-induced lockdowns damaging the economy and bulk stimulus released all around the world.

(With agency inputs)