Gold prices soar as COVID-19 concerns persist

Sruthi Vibhavari

Amid the persisting concerns of the health crisis, domestic gold prices surged to a new high of Rs. 55,039 per ten grams on Wednesday. The new high is a result of a weaker dollar and global rates rising as much as $2,000 per ounce, while there are expectations for more stimulus to revive the pandemic-ravaged economy.

Spot gold was last seen trading at $2,014.41 per ounce, having hit a record high of $2,030.72 per ounce earlier on Wednesday.

The fears about the economic fallout from rising COVID-19 cases also boosted the demand for safe-haven (an investment that is expected to retain or increase in value during times of market turbulence) metal. The uptick in the US Dollar however capped the gains. Gold rates also broke a series of records over the past few weeks due to worsening ties between the world’s two largest economies – the USA and China.

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The gold rates climbed 30 per cent so far this year. The momentum remains positive even further given the uncertainty around the COVID-19 pandemic.

Meanwhile, the demand for yellow metal fell by 70 per cent during the same period. As for the June quarter, the demand fell to 64 tonnes as against 213 tonnes of last year.

Silver, on the other hand, falls to Rs. 63,000 a kilogram.

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