Mumbai, April 14 (IANS) Gold prices, which have significantly risen off late, are likely to rise further both in the domestic and global markets, as the turmoil in financial markets is seen to continue amid the coronavirus crisis.
As the nation-wide lockdown has been extended till May 3, market experts believe that the uncertainty in the markets is likely to see further uncertainty and investors will run for the safe haven investment, gold.
On the MCX, gold futures ended at Rs 46,286 per 10 gram on Monday, higher by 2.19 per cent from its previous close.
Similarly, surge was witnessed in the global gold prices.
On Tuesday. trading on the Indian commodity exchanges was shut on account of Ambedkar Jayanti.
The panic sentiment in financial markets due to the pandemic since early 2020 has pushed the price of yellow metal.
Since mid-December, gold prices have almost risen 30 per cent globally, when the number of coronavirus cases started to surge in China.
This has happened as all other asset classes seem to be uncertain right now, including property and share markets.
Indian stock markets have slumped to multi-year lows off late. On Monday, the Nifty50 settled at 8,993.85, lower by 118.05 points or 1.30 per cent from its previous close.
The BSE Sensex closed at 30,690.02, lower by 469.60 or 1.51 per cent from the previous close of 31,159.62.
International Monetary Fund’s World Economic Outlook (WEO) report released on Tuesday by Chief Economist Gita Gopinath expects presents a dark picture of the world with the global economy shrinking by 3 per cent this year.
Further, with the extension of the nationwide lockdown till May 3, a Barclays report has projected that India’s GDP will stagnate and not grow at all during the calendar year 2020.