The Reserve Bank of India’s (RBI) decision to increase the gold loan-to-value (LTV) ratio to 90 per cent from the earlier 75 per cent is music to the ears of investors who have good exposure to gold related investments, Senior Technical Analyst Anuj Gupta said. 

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In fact, gold investors can benefit in 2 very important ways. Firstly, they can use their money to buy gold as a hedge in these uncertain times. Secondly, they now also have the option to pledge this precious metal that they hold and apply for loans instead of selling in times of emergency.  

This is also likely to increase interest in bullion even more, he said. 

Gupta, who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said that the outlook remains positive and the October MCX gold futures will likely touch Rs 57000 by tomorrow, the last trading day of this week. The gold futures today attained a life time high of Rs 56079 per 10 gram at the time of the filing of the story.  

At 8:15 pm, the October Gold Futures were trading at Rs 55710, up by almost 1 per cent from the previous close on Wednesday. 

"Spot gold prices for 24 carat in Delhi rose by Rs 225 with strong rally in international prices," PTI reported quoting HDFC Securities Senior Analyst (Commodities) Tapan Patel said. In Mumbai, standard gold ended at Rs 55690 while pure gold at Rs 55914. 

Gold surged to a record high on Thursday as the COVID-19 pandemic clouded the economic outlook and bolstered bullion`s safe-haven allure, though analysts said the rapid pace of gains could prompt some correction, Reuters reported. 

Spot gold hit an all-time high of USD 2059.09 per ounce and was up 0.9 per cent at USD 2,057.00 at 1153 GMT. US gold futures rose 1 per cent to USD 2,069. 

"It`s the best of all worlds for gold at the moment; we still have the coronavirus crisis in full swing mainly in the U.S... We still have the question of whether the economy is going to recover or will slip back into recession," said Julius Baer analyst Carsten Menke. 

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Gold`s gains came despite a slight uptick in the US dollar, which also benefited from receding risk sentiment as investors awaited US jobs data for confirmation on the state of the world`s largest economy, even as Washington remained deadlocked over a large relief package, the report further said.