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Gold rate today: Yellow metal rises to all-time high; May test Rs 48,400 per 10 grams level

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Gold rate today: Yellow metal rises to all-time high; May test Rs 48,400 per 10 grams level

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Gold prices in India touched its all-time high on the Multi Commodity Exchange (MCX) Monday in line with the international spot prices that rose to its highest in more than seven years as a weak global economic outlook and worsening of US-China relations increased safe-haven appeal. Fall in Indian rupee also aided yellow metal prices in the domestic market, analysts said.

Gold rate today: Yellow metal rises to all-time high; May test Rs 48,400 per 10 grams level
Gold prices in India touched its all-time high on the Multi Commodity Exchange (MCX) Monday in line with the international spot prices that rose to its highest in more than seven years as a weak global economic outlook and worsening of US-China relations increased safe-haven appeal. Fall in Indian rupee also aided yellow metal prices in the domestic market, analysts said.
At 11:25 am, gold futures for June delivery surged 1.14 percent or Rs 539 to Rs 47,920 per 10 grams as against the previous close of Rs 47,381 and opening price of Rs 47,659 on the MCX.
Data out on Friday showed US retail sales and industrial production both plunged in April, putting the economy on track for its deepest contraction since the Great Depression. Adding to the bleak economic scenario was renewed Sino-US friction, a Reuters report said.
In the global market, gold rose over 1 percent on Monday to its highest in more than seven years as dismal US data underscored how badly the COVID-19 pandemic has damaged the world's top economy.
Spot gold was up 1.1 percent at $1,760.85 per ounce by 0402 GMT, after rising to its highest since October 12, 2012 at $1,763.51. US gold futures gained 0.8 percent to $1,770.50.
“As expected safe heaven demand supports the gold prices. Last week gold prices increased by 3.42 percent and touched new high. Dovish comment by Federal Reserve Chairman Jerome Powell that business shutdowns could easily cause the US economy to crash by up to 30 percent in the current quarter. The comments led gains in gold prices,” said Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking.
Meanwhile, SPDR Gold Trust holdings, the world's largest gold-backed exchange-traded fund, rose 0.8 percent to 1,113.78 tonnes on Friday.
The Indian rupee fell in the early trade on Monday amid sell-off in the equity market. It opened 27 paise at 75.84 per dollar against Friday's close of 75.57.
Analysts expect gold may trade positive going ahead towards Rs 48,200 to 48,300 levels.
“For intraday perspective in intraday, traders can buy Gold around Rs 47,300 to 47,400 levels, with the stoploss of Rs 46,900 levels and for the target of Rs 48,300 to 48,400 levels. In the international market spot Gold can test $1,780 to $1,800 levels,” Gupta added.
Meanwhile, silver futures traded 3.38 percent or Rs 1,579 higher at Rs 48,297 per kg. The prices opened at Rs 47,190 as compared to the previous close of Rs 46,718 per kg.
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