Gold prices today hit fresh all-time high, silver at 8-yr high; analysts see further rise in yellow metal

gold, gold price, gold ratesBucking the trend, silver also touched an 8-year high of Rs 67,560 per kg in today’s trade

Gold prices surged yet again on Tuesday, hitting a fresh high of Rs 52,435 per 10 grams, mirroring the record-breaking rally in the global markets, where the yellow metal touched the lifetime high of $1981.10 per ounce. The yellow metal surpassed its record high level of Rs 52,414 per 10 grams touched in the previous session. Bucking the trend, silver also touched an 8-year high of Rs 67,560 per kg in today’s trade. Analysts expect this rally in gold and silver to continue in the coming day. “Geopolitical tension between US-China and weakness in the dollar supported the bullions. The dollar weakened against all major currencies at 93.60 levels. US Bonds yields also declined which supported the safe-haven demand for bullions,” said Anuj Gupta, DVP- Commodities and Currencies Research at Angel Broking.

On MCX, gold August futures were trading Rs 200 higher or 0.38 per cent at Rs 52,300 per 10 grams while the silver September futures rose Rs 976 or 1.49 per cent to rule at Rs 66,504 per kg. With today’s surge, gold prices are now over 36 per cent up from March lows.  Expecting a further upside in gold and silver prices, Anuj Gupta expects gold to test  Rs 53,000 and silver Rs 70,000 soon. 

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Silver prices have more than doubled from Rs 33,580 per kg, hit in March this year. Silver prices touched a record high of Rs 73,600 per kg in 2011. “Silver is also rapidly catching up with the gold rally as it is just shy of 9.7% away from hitting an all-time high in MCX,” Bhavik Patel, Senior Technical Research Analyst at Tradebulls Securities, told Financial Express Online. The escalating US-China tensions and economic impact of coronavirus pandemic due to rising worldwide cases have provided fuel for the rally in precious metals. “The cherry on top was the stimulus package of around $750 billion declared by the European Union while another round of $1 trillion stimuli declared by the US. These stimuli have pushed bond yields significantly lower thus giving a tailwind to gold,” Patel added.

Globally, spot gold was up 1.4 per cent at $1,969.76 per ounce. US gold futures climbed 1.7 per cent to $1,963.30. Reflecting investor sentiment, holding at the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.5% to 1,234.65 tonnes on Monday. “Sentiment is positive in the bullion space. Investors will eye an outcome of the Fed monetary policy meeting tomorrow night,” said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers.

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