Mumbai: In the last week, the price of gold has once again reached a new record level. On the Multi Commodity Exchange (MCX), the October Gold Future price has risen by 1.12 per cent to Rs 53,425 per 10 grams. During the trading session on Friday, the price of gold had reached the level of Rs 53,700 per 10 grams. In the last one week, the price of gold has increased by 4.6 percent i.e. Rs 2,500 per 10 grams. Not only gold but silver also saw a boom in the futures market. Last week, the price of silver rose 3.6 per cent, ie Rs 2,300 per kg (Silver Price). With this, the price of one kilogram of silver has increased to Rs 64,970.
Gold became 35 percent more expensive this year
In India, the price of gold has increased up to 35 percent so far this year. In the global market too, precious metals are seeing a boom. Experts say that due to Kovid-19, the global economy has seen a huge decline. The ever increasing cases of corona virus have made the situation more difficult. This is the reason why the gold-silver rate is going up.
American economy deteriorated
Statistics show that for the first time since the Great Depression, there has been a huge decline in the US economy. American GDP growth in the second quarter has dropped 32.9 percent due to the current epidemic. On the other hand, investors are now preparing themselves for political uncertainty.
Record investment in ETFs
Apart from this, there is a weakness in the dollar and a decrease in interest rates. This is the reason why gold prices in the global market have closed strongly in the last week. Up to 30 percent of both precious metals have been recorded here. Silver and gold exchange traded funds (ETFs) have reached record levels in the global market.
Only last week, the US Federal Reserve has asked to do everything possible to boost the economy. After this, the price of spot gold reached $ 1,983.36 per ounce on Friday.
What is the estimate of analysts
In the coming days, the government is expected to announce another relief package. After this, now enlisters are once again anticipating that gold prices will increase. Goldman Sachs has estimated that the price of gold can reach $ 2,300 per 10 grams. Whereas, Bank of America says these prices can reach up to $ 3,000 per 10 grams. However, JP Morgan Chase & Co. has said in its report that the yellow metal will be shining later this year.
Gold bond subscription opens from tomorrow
Talking about India, the fifth trunk of Sovereign Gold Bond (SGB) will be opened for subscription from tomorrow. For this, the issue price has been fixed at Rs 5,334 per gram. Sovereign Gold Bonds are issued by the RBI on behalf of the central government. Gold bonds are a type of government securities, which are subscribed per gram of gold. It is considered an option to keep gold in physical form.
