Amid gloomy economic outlook and continued uncertainty, if there is one asset class that looks likely to flourish, it is gold. With domestic prices at record highs, analysts see the uptrend continuing for the yellow metal.
On MCX, August gold futures rose to a record high of Rs 48,589 per 10 gram on Wednesday. It closed at Rs 48,232, as traders locked in gains.
“The trend continues to be positive for gold. The geopolitical tensions, and IMF (The International Monetary Fund) cutting global economic forecasts, will keep the prices in an uptrend,” said Anuj Gupta DVP–commodities & currencies research, Angel Broking.
The IMF projected a deeper recession and slower recovery for the virus-ravaged world economy than it anticipated two months ago. With the downturn deeper than previously projected, the global output will shrink by 4.% and emerging markets by 3% this year.
It also slashed India’s growth outlook for the current fiscal year to a minus 4.5 per cent from 1.9 expansion estimated in April on the back of an extended Covid-19 lockdown and slower economic revival.
Meanwhile, global cases of the Covid-19 have surpassed 9 million, with Brazil and India grappling with a record surge in infections, and a host of countries including the US and China reporting new outbreaks.