New York/London: The gold rate spurted on Tuesday against the background of the Coronavirus pandemic, enormous funding by the central banks of various countries and the rising tension between the United States and China. In the transactions in the US markets, the value of gold jumped by 1.7%, reaching the historic high of USD 2,021 per ounce (28.34 grams). This is for the first time in history that the gold rates have crossed the USD 2,000 level. The rising trend continued on Wednesday, taking the gold rates to the new record at USD 2,054 per ounce. Riding on the trend in the international market, the gold rates in the Indian markets also zoomed to ₹56,750 per 10 grams.
It has been observed that since the last few weeks, the Coronavirus pandemic is becoming more intense. The number of patients in America, Europe, Asia and Africa continents is increasing rapidly. The global economy has taken a major hit due to the pandemic, and experts are claiming that recession is setting in. The central banks of the United States, European and Asian countries have announced huge financial packages to tide over this recession and the interest rates also have been brought to near zero levels. At the same time, the rising tension between the United States and China, and the intensifying tension in the Gulf has created an atmosphere of uncertainty and instability on the international level.
Against this background, investors seemingly have turned to the secured and perpetual investment in gold. In 2019, the gold rates recorded a jump of 25%. In the first seven months of this year, the gold rates have jumped by nearly 30%, and the rising trend is expected to continue. Gold rates jumped by 1.7% in the transactions on Tuesday, recording a rise of USD 34 per ounce. Therefore, the gold rates crossed the USD 2,000 level to close at USD 2,021.
The effect of this spurt in gold rates on Tuesday continued in the transactions on Wednesday. The gold value reached the record level of USD 2,050 in the early transactions on Wednesday. Against this very background, the analysts at the Bank of America Global Research predicted that the gold rates would reach USD 3,000 by the end of 2021. Meanwhile, the gold rates in India also have scaled record levels due to international developments. The gold rate in India reached ₹56,750 per ten grams on Wednesday.
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