New Delhi | Jagran Business Desk: The gold prices crossed the mark of Rs 50,000 for the first time ever on Wednesday. On Multi Commodity Exchange (MCX), the prices as for August gold futures recorded a surge of 1 per cent taking the absolute price to Rs 50,010 per 10 gram. It was for the second consecutive session that gold prices recorder a 1 per cent rise within a single session.

It's not just the gold, but silver too, that is recording an exponential price growth due to increased investment in precious metals during the pandemic. The September Multi Commodity Exchange (MCX) silver futures rose to Rs 61,130 per kg, recording a surge of 6.6 per cent.

As for the precious metal trade in the international market, the spot gold prices reached its nine year highest, at $1865.81 per ounce, an increase of 1.3 per cent as compare to the previous trading session. The spot silver prices too, reached its seven year high in the international market at $22.83 per ounce, an increase of a whopping 7.3 per cent as compared to the previous trading session.

"Gold has moved higher as demand was boosted by worries over a spike in COVID-19 cases and expectations of more stimulus measures. EU leaders agreed on a 750-billion-euro stimulus plan for regional economies hard-hit by the pandemic. The US is also working on a $1 trillion relief bill," Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers, was quoted as saying by Livemint.

Standard & Poor's Depositary Receipt (SPDR) Gold Trust, the biggest gold ETF (Exchange Traded Fund) of the world, said that its holdings surged by 0.7 per cent to 1,219.75 tonnes on Tuesday.

Precious metals, especially the Gold is used as a ‘safe investment’ during the times of crisis looming uncertainties. Investors worldwide, are thus investing in the precious metals in the wake of rising Coronavirus cases and economic ramifications of the same.

Posted By: Abhinav Gupta