New Delhi, Gold futures on Monday witnessed a massive jump of Rs 1,493 and crossed the psychological mark of Rs 96,000 per 10 grams due to rising demand in the global market.
The yellow metal contracts for June delivery on the Multi Commodity Exchange (MCX) continued their stellar performance for the third consecutive day and climbed Rs 1,493 or 1.57 percent to touch a new peak of Rs 96,747 per 10 grams in early trade.
Later, it bounced back sharply and was trading at Rs 96,600 per 10 grams, up Rs 1,346 or 1.41 per cent with an open interest of 21,540 lots.
Similarly, the follow-on contract for August delivery rose by Rs 1,464 or 1.53 percent to hit a record high of Rs 97,360 per 10 gram on MCX.
Commodity markets were closed on Friday on account of Good Friday.
Analysts said the ongoing trade tension between the United States and China has added to global uncertainty, prompting investors to seek refuge in safe-haven assets.
They said gold is likely to continue its upward trend until a resolution is found between the world’s two largest economies.
In global markets, gold futures hit a new high of $3,400.86 an ounce.
“Gold set a new record high, helped by a lower US dollar and safe-haven buying amid global trade concerns,” said Rahul Kalantri, Vice President, Commodities at Mehta Equities Ltd.
He said the US dollar hit a two-year low after President Donald Trump launched a series of attacks against US Federal Reserve Chairman Jerome Powell last Thursday, saying his staff is considering replacing Powell, a move that would have serious implications for the central bank’s independence and global markets.
“The ECB (European Central Bank) cut interest rates by 25 basis points, which supported gold prices.
“Gold is witnessing a lot of volatility and only any positive talks on the US-China trade deal may limit the precious metal’s gains, otherwise it may continue to show strength,” Kalantri said.
