Gold nears Rs 55,000 per 10 gm, silver crosses Rs 70,000 per kg

Gold futures on the Multi-Commodity Exchange (MCX) reached a new record level on Wednesday as it neared the Rs 55,000 mark.

The October contract of gold on the MCX touched an all-time high of Rs 54,910 per 10 gram. It is currently trading at Rs 54,848, higher by Rs 297 or 0.54 per cent from its previous close.

A recent report by the World Gold Council (WGC) showed that it is the record inflow into gold-backed ETFs (Exchange Traded Funds) which has caused the rally in the prices of the yellow metal. The consumer demand, however, has hit rock-bottom amid the pandemic.

Inflows into gold-backed ETFs (gold ETFs) accelerated in Q2, taking H1 inflows to a record-breaking 734 tonne. First half inflows surpassed the previous annual record from 2009 of 646 tonne and lifted global holdings to 3,621 tonne, the report said.

In line with the trend in gold futures, the September contract of silver on the MCX also touched a high of Rs 70,223.00 per kilogram. Currently, it is trading at Rs 70,129 per kg, higher by Rs 332.00 from its previous close.

Apart from pickup in investment and industrial demand, the supply concerns for silver have lifted its prices. Peru, the world's second-largest silver producer, saw itsmine supply fall by one-third due to the Covid-induced lockdowns.