Gold has hit all time high on Monday as the China and US ties has worsen the situation and the dollar weakened to a multiyear low on concerns over the US economic outlook and deteriorating relations between Beijing and Washington.
The price of the precious metal, which investors typically view as a haven in times of uncertainty, climbed as much as 1.1 per cent to a record $1,923 per troy ounce in Asia trading on Monday.
Gold has rallied in recent sessions as doubts have deepened over the prospects for a smooth economic recovery in America. The US reported a total of 62,000 new coronavirus cases on Sunday with states including Florida, Tennessee and Arizona recording the highest number of new cases per million people.
Gold price in India depends on a host of factors including international gold prices, currency rate movements, and also the local tariffs.
One of the most important reason for gold prices to go higher is international prices. When international prices of gold move higher, gold rates in India see a change.
In New Delhi, the price of 22-carat gold rose to Rs 49,970 per 10 gram.
While 24-carat gold in the national capital was retailing at Rs 50,920. In Chennai, 22-carat climbed marginally to Rs 49,060 while the price of 24-carat gold price in Chennai stood at Rs 53,490. In Mumbai, the rate was Rs 49,920 for 22-carat gold and Rs 50,920 for 24-Carat gold, according to the Good Returns website.
The jump for gold came as the greenback lost ground against a swath of currencies. The dollar index, which measures the currency against a basket of trading peers, fell 0.3 per cent to its lowest level since September 2018.
Futures markets tipped US and UK stocks to climb when trading begins later in the day. The S&P 500 was set to rise 0.5 per cent while the FTSE 100 was tipped to gain 0.3 per cent.
