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Gold prices hits 55,000 for first time; overseas rate crosses $2,000 mark

Gold price today: Supported by upbeat safe-haven demand, Gold August futures on Multi Commodity Exchange were trading higher by Rs 513 to Rs 55,064 per 10 gm against the previous close of Rs 54,551 per 10 gm, after touching an intraday high as well as an all-time high of Rs 55,200 today

Rupa Burman Roy | August 5, 2020 | Updated 17:04 IST
Gold prices hits 55,000 for first time; overseas rate crosses $2,000 mark
Silver September futures was trading Rs 164 higher at Rs 69,961, after hitting a lifetime high of Rs 70,223 earlier today

Gold, Silver prices in India on August 5: Gold price surpassed Rs 55K mark per 10 gm today in India as sentiment in global equity market remained wobbly amid escalating tensions between US and China and concerns over the expectations of more stimulus measures.

A weak US dollar and rise in cases of coronavirus infections across the globe have kept demand for the yellow metal high.

Gold price scales record-high; silver above Rs 65K mark

The yellow commodity hit new high of $2,000 mark amid heightening concerns over the stimulus in the US. White House negotiators on late Tuesday vowed to work 'around the clock' to reach a spending deal by the end of the week, but the Treasury Secretary warned they were not 'going anywhere close' to the $3.4 trillion Democratic leaders sought.

News of an initial six-month review meet between the senior US and Chinese officials over the implementation of their Phase 1 trade deal also helped the bullion trade higher. The two countries are likely to air mutual grievances in an increasingly tense relationship during the August 15 videoconference.

The rise in price for the precious metal to record levels has led to a fall in India's gold imports by 24% in July.

MCX

Supported by upbeat safe-haven demand, Gold August futures on Multi Commodity Exchange were trading higher by Rs 513 to Rs 55,064 per 10 gm against the previous close of Rs 54,551 per 10 gm, after touching an intraday high as well as an all-time high of Rs 55,200 today

On a similar note, Silver September futures was trading Rs 164 higher at Rs 69,961, after hitting a lifetime high of Rs 70,223 earlier today.

Global markets

Overseas, bullion price surpassed $2,000 mark in today's session. Comex gold was trading 0.51% higher at the day's low of $2,011.50 per ounce, after hitting an all-time high of 2,024 an ounce earlier in the session. Spot gold was up 0.2% at $2,022.42 per ounce after rising above $2,030 in early session, while US gold futures rose 0.9% to $2,039.

Precious metal prices have been surging to fresh record highs in domestic as well as international commodity markets, amid intensifying US-China tensions and COVID-19 pandemic.

Retail gold in India

24-carat gold prices in the national capital were trading at Rs 53,760 per 10 gram on Tuesday.

The price of 24-carat gold stood at Rs 56,820 per 10 gram in Chennai. In Mumbai, the rate was Rs 53,310 for 24-Carat gold, as per Good Returns website.

Valuation

On MCX Gold October futures, the brokerage Geojit Financial Services said that resistance is expected at 55680, while key support is at 53,460.

For SIlver, resistance was at 71500/75000, while support is expected at 64200.

On gold's near term outlook, Hareesh V, Head Commodity Research at Geojit Financial Services said," Diminishing hopes of an immediate economic recovery amid rising pandemic cases continue to support gold's bullish outlook. More economic stimulus measures from central banks to combat the economic blow due to the pandemic, escalating geopolitical uncertainties and a weaker US dollar will continue to lift gold's safe-haven appeal and demand for the commodity. Anyhow, a technical correction cannot be ruled out as prices breached the psychological level of $2000 an ounce."

On London spot's technical outlook, he added," Bullish outlook will continue and prices may look towards the next target of $2280 as long as it stays above $1980. However, a direct drop below $1880 could negate the outlook and take prices lower."

Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking said," Gold has been really precious for investors in 2020 with an astounding double digit returns of 34 percent YTD in dollar terms and still continues its shine. The liquidity push by Central Banks across the globe has been a deciding factor for premium in gold prices as the pandemic continues to ravage global economy. The easy money policy is resulting in to chasing higher yields on asset classes which are considered to be safe in times of uncertainty, and nothing like gold, the safe haven asset which has historically been a go to investment for investors. Unless, global economy starts its recovery path, precious metals will continue to shine for the rest of 2020."

On Silver, he added,"Silver prices will eventually move higher towards $27.5 per ounce in the international market and Rs.75000 per kg in the domestic markets, taking in to consideration the recent momentum in the metal."

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