Gold prices in India breached Rs 41,000 mark (per 10 gm) on Monday, i.e. 6 January, tracking gains in the international market after a US airstrike on Baghdad killed a top Iranian commander, triggering safe-haven buying in precious metals. Here are 10 things you should know about the ongoing rally:
— On MCX, February gold futures surged 2.4%, or Rs 961, to a record high of Rs 41,073 per 10 gram on Monday morning.
— Gold had earlier breached Rs 40,000 mark per 10 gm on Friday. Monday's rally takes the total jump in gold prices in the last two trading sessions to over Rs 1,800 per 10 gm.
— Silver futures on MCX also soared 2.25%, or Rs 1,068, on Monday to trade at Rs 48,595 per kg.
— The rally in domestic gold and silver prices gained further momentum after the Indian rupee weakened beyond Rs 72 per US dollar on Monday as global oil prices spiked on escalating geopolitical tensions in West Asia.
— In international markets, too, spot gold prices on Monday surged 1.7% to stand at $1,577.98 per ounce by 0409 GMT. Earlier in the session, it had rallied as much as 1.8% to touch $1,579.72, its highest since 10 April, 2013.
— Spot palladium also hit an all-time peak of $2,020.18 an ounce, and was last up 1.5% at $2,017.67.
— Most analysts believe that rising geopolitical concerns are likely to keep the momentum going in gold and investors should use any dips to buy into the precious metal.
— Brokerage firm SMC Global Securities said that gold can see further upside towards Rs 41,300 per 10 gm, while silver can test Rs 48,900 per kg while taking support near Rs 48,200.
— IndiaNivesh Commodities, in a note to its investors, said that every dip is an opportunity to buy and avoid short sell in precious metals.
— Gold prices have already surged over 25% in India in 2019 due to a hike in import duty and rupee’s depreciation against the dollar.
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