With the fear of recession, there has been a jump in the demand for gold among the investors, due to which the prices have increased. Actually, gold is considered a safe investment in the midst of recession.
Gold rises on fears of recession
Money9: As soon as the GDP growth figures were released by the US on Thursday, so did the foreign market gold prices started rising. On Friday, on Comex, the price of gold for August futures has reached a 3-week high of $ 1765, for the most active December futures, the price is close to $ 1785.
Price rise in domestic market also
The effect of rising prices in the foreign market is also visible in the domestic market. The price of gold on the commodity exchange MCX is close to Rs 51700, last week the price on MCX touched a low of Rs 49703 per 10 grams and from there the price has increased by about Rs 2000. Whenever there are economic challenges around the world, the demand for gold increases as a safe investment. This is the reason that the fear of recession has led to a rise in the price of gold.
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