Bull-run persists in precious metals; gold above Rs 56k/10 gm

Amid the global uncertainty, investment demand and supply concerns, touching fresh record levels has become the new normal for gold and silver prices. Continuing with the bull run, gold futures on Friday touched a new all-time high of Rs 56,191 per 10 gram.

Currently, the active October contract of gold on the MCX was trading at Rs 55,950 per 10 gram, higher by Rs 105 or 0.19 per cent from the previous close.

For gold, it has been the global economic uncertainty amid the pandemic which has made investors flock towards the yellow metal, which is traditionally considered a safe haven asset.

Similarly, the futures contracts of silver on MCX surged recorded a new high on Friday as it touched Rs 77,949 per kilogram.

The September contract of silver is currently trading at Rs 76,900 per kilogram, higher by Rs 848 or 1.12 per cent from its previous close.

According to market experts, industrial and investment demand have picked up of late for silver as economies are opening up gradually post the pandemic-related lockdowns. Further global supply constraints have been a major factor for the recent surge.

Peru, the world’s second-largest silver producer, saw its mine supply fall by one-third due to the Covid-induced lockdowns.