On Wednesday, due to the rise in the price of gold globally, gold futures prices in India also reached an all-time high. Due to increasing cases of corona in different countries, people have increased investment in gold considered safe. In early trade, gold futures prices in India reached an all-time high of Rs 48,871 per 10 grams. In this way, gold futures prices have seen an increase of 25% so far in 2020. Earlier, in 2019, there was a rise of 25% in the futures price of gold.
Due to the steep rise in the prices of gold, there has been a decrease in the retail demand of gold in the country. India is the second-largest consumer of gold worldwide. A Mumbai-based bank dealer affiliated with a bullion importing bank said, "Retail demand is negligible. Buyers are currently deferring their purchase plans in the hope of a reduction in prices. ''
In the month of May, the import of gold in the country saw a tremendous decline of 99% compared to the same period last year. Gold imports declined due to the closure of jewelry shops and restrictions on international flight services due to the nationwide lockdown to prevent coronavirus infection. The spot prices of gold in the international market have reached near eight-year high on Wednesday. Due to rising cases of coronavirus in the US and other countries, the prospects of economic recovery on the global level have been diminished and due to this, investors have invested in gold called safe haven.
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