Gold prices in India rose on Wednesday amid the economic uncertainty and the gains in prices of the yellow metal in the global markets.
Currently, the June contract of Gold on the MCX is trading at Rs 47,275 per 10 gm, higher by Rs 225 or 0.48 per cent from its previous close.
The June contract of gold on COMEX was at $1,752 per ounce, higher by 0.4 per cent from its previous close.
Bachhraj Bamalwa, a Kolkata-based jeweller, said that as the economic scenario is not stable globally, investors are moving towards gold. Investors generally turn to gold in times of uncertainty as it is considered as a safe haven asset.
However, Bamalwa, who is also a former Chairman of the All India Gems and Jewellery Trade Federation, noted that due to the restrictions and lockdown globally to combat the COvid-19 pandemic, there is not much demand in the physical markets, including the major jewellery manufacturing industries of Italy and Turkey. The major demand is coming from the international gold exchange traded funds (ETFs).
In the domestic spot market, the yellow metal is currently trading at around Rs 48,900 per 10 gm, against the previous closing level of Rs 48,500, he said.
On Monday, both in the spot and futures market, gold touched record levels of Rs 49,700 and Rs 47,980 per 10 gm, respectively, before slipping from the highs.
Silver futures also surged on Wednesday. The July contract of silver on the MCX is currently trading at Rs 49,450 per kg, higher by Rs 629 or 1.29 per cent from its previous close.