Gold price hits all-time high of Rs 49,579! Outlook still golden for yellow metal as rates to soar further

MCX August Gold futures today hit a new life time high of Rs 49,579! Yellow metal has been hitting multiple highs over the last few months, but even now the outlook is quite golden, so to speak, as rates are expected to head further northward in these times of coronavirus. What is important is that gold price hit a new historic high despite reports coming of a sensational breakthrough in finding a Covid 19 vaccine. The corona vaccine has been developed by the University of Oxford. The drug looks to be safe and even induces a strong immune response within the body. This was announced on Monday in the wake of the first phase of human trials, but it in no way managed to dent the perception among investors of gold being the best safe haven investment.

That means, the yellow metal is still a more lucrative investment option for investors. At 7 pm, Gold Futures were trading around Rs 49,485, up by almost 1 per cent from the Monday close. 

Importantly, senior Technical Analyst Anuj Gupta said that it may attain levels around Rs 50500 by the end of Friday’s trading session.

The resistance levels around Rs 49400 have been broken and now there is a possibility of a further upside. He said that gold is becoming dearer by the day and will further become expensive as uncertainties loom.

Today, the spot gold price is Mumbai for standard gold was Rs 49452 while for pure gold the price was Rs 49440, PTI reported.

The weakness in dollar is further firming up the prices, he added. Treasury yields in US dipping on Monday is another reason why the precious metal is gaining, he added. As cases of the coronavirus cases in the US continued to rise and fiscal stimulus shores up economies, gold will further become strong.

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Gold prices will push towards record highs over the next 18 months as the coronavirus crisis encourages investors to hoard the metal as a hedge against possible turmoil in the wider markets, a Reuters poll showed.