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Gold price trades near record-high amid rise in Covid-19 cases

Gold, Silver prices today: Escalating tensions between the US and China, expectations of more stimulus measures on hold, a weak US dollar and rise in cases of coronavirus infections across the globe have kept demand for gold high.

Rupa Burman Roy | August 3, 2020 | Updated 11:15 IST
Gold price trades near record-high levels amid rise in Covid-19 cases
Gold, Silver prices today: On a similar note, Silver September futures gained Rs 294 to trade at Rs 63,615 per kg today, after hitting a lifetime high of Rs 67,560 recently, in the last week

Gold, Silver prices in India on July 31: Gold price in India was trading near record highs today amid weak economic data. Low-interest rate situation in the US also helped the yellow metal gain momentum.

Gold August futures on Multi Commodity Exchange were trading higher by Rs 408 to Rs 53,189 per 10 gm against the previous close of Rs 53,039 per 10 gm, after touching an intraday high of Rs 53,294. Yesterday, Gold August Futures today touched an intraday as well as an all-time high of Rs 53,297 per 10 gm.

On a similar note, Silver September futures gained Rs 294 to trade at Rs 63,615 per kg today, after hitting a lifetime high of Rs 67,560 recently, in the last week.

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

Escalating tensions between the US and China, expectations of more stimulus measures on hold, a weak US dollar and rise in cases of coronavirus infections across the globe have kept demand for gold high.

In India, domestic coronavirus cases neared 16.39 lakh with total deaths standing at 35,786. Worldwide, there are 174 lakh confirmed cases and 6.7 lakh deaths from the coronavirus COVID-19 outbreak.

Gold price climbs to all-time high of Rs 53,297; silver above Rs 65K mark

Retail gold prices in major Indian cities

Gold prices in the national capital rose by Rs 118 to Rs 53,860 per 10 gram on Thursday amid rupee depreciation, as per HDFC Securities.

The price of 24-carat gold stood at Rs 53,000 per 10 gram in New Delhi, while in Chennai, the price of 24-carat gold price in Chennai stood at Rs 51,030. In Mumbai, the rate was Rs 51,920 for 24-Carat gold, as per Good Returns website.

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Global markets

Overseas, the price of the bullion rose this morning as GDP in US fell to record lows, that raised doubts about the pace of economic recovery. Gold prices slipped yesterday amid rising concerns of uncertainties over the additional stimulus package in the US and as investors took some profits after the recent rally.

In the international market, Comex gold gained 0.21% to $1,964 per ounce, after hitting an all-time high of $1,965.10 today.

Meanwhile, spot gold was trading 0.48% higher at $1,968.84 per ounce, just short of record highs of $1,971.52. Gold price has risen over 28% so far this year.

Similarly, Silver futures dropped 0.9% to $24.20 per ounce.

Weakness in the dollar, that fell 0.39% against the yen to 104.31 in the currency market also helped the bullion inch higher.

Valuations

Amid less participation of investors in broader equity indices, and more inclination towards precious commodities, many market analysts have turned bullish for the metal in the coming week.

Global commodity analysts are predicting the price of the yellow metal to breach $1,980 mark and touch $ 2000 level soon, facing resistance in the short term.

On MCX Gold's near term outlook, Kishore Narne, Associate Director & Head, Commodities & Currencies, Motilal Oswal Financial Services said," We have been bullish on gold for the last couple of years and the view has played out very well, and two quarters back in Dec'19, we have revised our targets from Rs 42,000/10gms to Rs 65,000/10 Gms in 18-24 months. We expect gold to keep up the momentum with occasional corrections, and we suggest investors to use every dip to keep buying gold over medium to long term targets of Rs 65,000".

On Spot gold, Geojit Financial in its daily market report said the breaking the immediate resistance of $1,980 is required to continue upticks towards $2,000 or, more levels. However, a direct drop below $1880 could negate the near term bullish outlook and take prices lower. For Gold August Futures on MCX, the brokerage estimated resistance at Rs 53,800 and support at Rs 52,280.

On Gold August Futures on MCX, the brokerage firm estimated resistance at Rs 53,800 and support at Rs 52,280. For Silver, the support stands at Rs 58,400 and resistance at Rs 65,800/70,000.

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