Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Monday as escalating tension between US and China boosted safe-haven appeal. The yellow metal touched fresh lifetime high of Rs 51,833 levels on MCX and in the international market, it hit the high of $1944.50 per ounce levels. Silver also touched the 8 years high of Rs 64,896 levels.

Share Market Live

NSE

At 11:15 am, gold futures for August delivery rallied 1.59 percent or by Rs 814 to Rs 51,849 per 10 grams as against the previous close of Rs 51,035 and opening price of Rs 51,749 on the MCX. Silver futures traded 5.82 percent higher or by Rs 3,563 at Rs 64786 per kg. The prices opened at Rs 63,671 as compared to the previous close of Rs 61,223 per kg.

“Geopolitical tension between US and China and weakness in dollar supports the bullion. The dollar is weakening against all major currencies at 93.80 levels. US Bonds yields is also low which supports safe heaven demand for bullion,” said Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking Ltd.

International gold prices jumped to record highs on Monday as an intensifying US-China row hammered the dollar and cemented expectations that central banks would continue pumping out stimulus to ease the economic pain from a worsening coronavirus pandemic, Reuters reported.

Spot gold rose 1.5 percent to $1,928.83 per ounce after hitting an all-time high of $1,933.30. US gold futures climbed 1.4 percent to $1,924.20.

“We expect this rally in bullion will continue and gold and silver will move further upside. Gold may test Rs 52,500 levels and silver Rs 66,000 levels soon,” Gupta added.

(Disclaimer:

The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)