In India and in global markets, gold continued its record-breaking rally. Gold prices in the world spot market touched an 8-year high of $1650/oz. On the MCX, gold scaled a new high of Rs.42,790 per 10 gram. Investment demand for gold also continued to rise with the holdings of the SPDR Gold Trust, the world's largest gold-backed ETF, higher at 934 tonnes. Even the gold pledged with Muthoot Finance and inflows into gold ETFs in India are at a peak. Overall, gold prices are up by over 7% in global markets this year with its safe haven demand being driven by global growth fears linked to the Chinese pandemic. Normally, a rally in gold is not good news for equities as it reflects a risk-off approach to investing.
In India and in global markets, gold continued its record-breaking rally. Gold prices in the world spot market touched an 8-year high of $1650/oz. On the MCX, gold scaled a new high of Rs.42,790 per 10 gram. Investment demand for gold also continued to rise with the holdings of the SPDR Gold Trust, the world's largest gold-backed ETF, higher at 934 tonnes. Even the gold pledged with Muthoot Finance and inflows into gold ETFs in India are at a peak. Overall, gold prices are up by over 7% in global markets this year with its safe haven demand being driven by global growth fears linked to the Chinese pandemic. Normally, a rally in gold is not good news for equities as it reflects a risk-off approach to investing.