NEW DELHI: Gold prices in the Indian market hit an all-time high, soaring to Rs 50,060 per 10 grams on Wednesday, July 22.

Demand for gold has grown significantly as a result of recent corporate scandals affecting more countries including the United States. In the latest rally in foreign market, gold hit nearly a nine-year high as investors flocked to buy the precious yellow metal.

At the New York Comex, the ounce (31.1 grams) rose 1 per cent to $ 1858. This is the spot market price. The gold price in the futures increasing at the same level at $ 1858.

It hit an intraday high of $ 1865. Previously, it reached $ 1865 in September 2011 before hitting an all-time high of $ 1921 in 2011.

On the other hand, silver price rose by 7 per cent to $ 22.8 an ounce and reached the second-highest value after October 2013.

European leaders on Tuesday approved a 750 billion package to help economies facing challenges caused by COVID-19.

On the other hand, expectations are mounting that the Washington government could announce another trillion-dollar package to help millions of Americans affected by the coronavirus. Against this backdrop, the dollar index weakened to a four-month low against six major currencies.

The Bank of Japan is already implementing support packages in Asian countries.

However, for the 15th month in a row, the manufacturing sector has lagged behind. On the other hand, experts say that US bond yields are declining.

It is a well-known fact that demand for gold usually appears when a crisis arises. According to bullion sources, investment companies like Sovereign Funds, ETFs and others are going to buy gold in the current uncertain situation along with the central banks of various countries, which resulted in an increase of gold prices.

Due to the increase in the gold price in foreign markets, the impact was felt domestically. In the futures market, ie MCX, August delivery is currently at Rs. 439 rise and reached at 49,966 for 10 grams.

This is an increase of 1 per cent and in Intraday reached Rs. 49,996 per 10 grams. Similarly, silver per one kg September delivery rose by 5.5 per cent and reached the trading point at Rs 60,435. Intraday trade touched Rs 60,782.