Gold Rate In India: Domestic gold futures eased after touching an all-time high of Rs 54,223 on Tuesday, as global rates hovered near their highest levels ever amid rising COVID-19 cases around the world. Multi Commodity Exchange (MCX) gold futures - due for delivery on August 5 - rose by Rs 226 - or 0.42 per cent - to touch the record high of Rs 54,223 mark during the session, compared to their previous close of Rs 53,997. At 3:59 pm, the MCX gold futures traded with a gain of Rs 157 - or 0.29 per cent - at Rs 53,840. (Track Current Gold Rate Here)
(MCX gold futures touched a record high of Rs 54,223)
Gold rates have broken a series of records over the past few weeks amid rising COVID-19 cases around the globe and worsening ties between the world's two largest economies. Typically, any sign of uncertainty in the financial markets boosts the appeal of gold as a safe-haven bet, as investors rush away from riskier asset classes. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
In the international market, gold prices held steady near record highs on Tuesday as worries over global economic fallout from mounting COVID-19 cases offset an uptick in risk sentiment driven by positive US economic data.
Spot gold was last seen trading steady at $1,976.19 per ounce.
The opening rate of gold jewellery stood at Rs 53,996 per 10 grams on Tuesday, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Domestic stock markets closed around 2 per cent higher on Tuesday, led by gains in heavyweights Reliance Industries and HDFC Bank, while strong US manufacturing data further aided investor sentiment. The S&P BSE Sensex index closed up 748.31 points at 37,687.91, and the broader NSE Nifty 50 benchmark ended 211.25 points higher at 11,095.25.
The momentum in gold continues to remain positive given the uncertainty around the coronavirus pandemic and the subsequent challenges to global economy, say analysts.
"Spot gold trades little changed near $1977/oz off the record high level set yesterday. In domestic market, the MCX gold August contract hit a high of Rs 54,199/10 gram yesterday, the highest price on record for a first month contract," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold continues to hold near record highs supported by safe-haven buying amid increasing challenges to global economy in form of rising coronavirus cases and increased US-China tensions."