In an unprecedented turn of events, the price of gold today crossed ₹50,000 per 10 grams as instability due to COVID-19 continues. Currently, the contract is trading at Rs ₹50010.00 per 10 gram, up from its previous close.
However, as per reports, the demand of gold is steady as other assets, including equities and properties, are not doing well amid the economic slowdown.
Over the years, investors have sought gold as a form of investment and relying on it during the pandemic too. Investors have flocked to procuring the precious metals on surging demand for safe havens amid a resurgence in virus cases and concerns over the economy. This can only mean there is less supply; leading to an increase in the price of the metal.
As per a report titled ‘Gold Mid-Year Outlook 2020,’ in the current global economic environment, three factors support the investment and demand for gold — high risk and uncertainty, low opportunity cost and positive price momentum.
“Additionally, we expect investors to turn to gold as a means of hedging as we have seen in the first half of this year,” it said.
Meanwhile, local silver prices jumped nearly 6% on Wednesday to 60,782 rupees per kg, the highest in 7-1/2 years, Reuters reported. The experts believe that silver has surged on expectations of a revival in industrial activity as hopes of vaccines rise.