Gold Prices Hit New Record High for 3rd Consecutive Day, Up Over Rs 41,780

Gold prices in India touched a new high on Thursday, February 20, extending their upward trajectory for the third consecutive day.

The April gold futures on MCX rose to Rs 41,798 per 10 grams, up by almost 0.5 per cent. The gold prices have been taking cues from international spot prices of the yellow metal that were trading close to a seven-year high.

The prices of gold in the global market are seen as an upward movement as safe-haven demand dwindled after a decline in coronavirus cases. Also, China on Thursday has announced that it would cut interest rates to boost the economy that was hit due to the outbreak of coronavirus.

According to a report by Reuters, China has reported a drop in new cases of coronavirus. Hubei reported 349 cases on February 19 from 1,693 a day earlier and the lowest since January 25, this is also because of the change in methodology.

The US Federal Reserve policymakers remain cautiously optimistic about their ability to keep the interest rates steady this year.

Investors are also waiting for the meeting of the US government officials scheduled for Thursday. During the meeting, the officials will discuss further restrictions on exports to Huawei and China.

With all these in mind, investors continue to see gold as a safe investment option. Gold prices on Wednesday rose to Rs 42,339 per 10 grams, up Rs 462.