Gold, Silver price today: Gold price surpassed the Rs 52,000 mark and hit a record high today, tracking gains from overseas amid rising coronavirus cases and ongoing tensions between the US and China. Hopes of additional stimulus helped the yellow metal stay in demand.
Gold futures on Multi Commodity Exchange were trading Rs 299 higher at Rs 52,400 per 10 gm for the first time ever against the previous close of Rs 52,101 per 10 gm. Earlier today, Gold August Futures touched an intraday as well as an all-time high of Rs 52,420 and a low of Rs 52,071 today, after opening at Rs 52,186 per 10 gm. Silver Futures were trading Rs 967 higher at 66495 per kg, after hitting a lifetime high of Rs 67,560 earlier today.
Precious metals have given a stellar performance in the first half of 2020, with both gold and silver hitting new all-time highs as traders shunned risk and sought a safe haven during coronavirus crisis.
Concerns over the economic impact of rising coronavirus infections in many countries, especially in the two largest economies-US and China have driven investment inflows into safe-haven assets like gold. Weakness in the dollar index against a basket of six currencies also helped the yellow metal cap losses.
The yellow metal (Comex Gold) was trading 0.03% higher at $1,931 per ounce on Friday in overseas markets. Spot gold traded $40 higher at $1,980 an ounce, after rising almost by $ 130 in a week's period. Silver futures were trading at $26.16 today.
Gold and silver have benefited from investors' need to reduce risk in such times of outbreak and uncertain geopolitical tensions. Further, sharp losses in the dollar and additional stimulus measures have kept investors upbeat for the safe-haven asset.
The trend reversal in the dollar is on back of news that top aids of the US President Donald Trump agreed in principle with Senate Republicans to complete details of a $1 trillion coronavirus relief package.
Tightening social restrictions and job losses has also dragged on the US dollar, besides hopes desperately needed stimulus extension, that has led the dollar to fall to a two-year trough as against the basket of currencies at 93.416 before steadying at 93.793.
Where in 2006, 10 gm of gold was sold for under Rs 10,000, the price of bullion metal has increased 141% but in the last 10 years. The safe haven is expected to shoot up during economic uncertainty.
Gold has risen by 34.3% since the beginning of 2020, significantly out-performing all other asset classes including mutual funds and equity markets. Motilal Oswal has projected that the yellow metal will hit Rs 65,000/10 gm by the end of 2020.
Commenting on today's rally, Anuj Gupta, DVP-Commodities and Currencies Research, Angel Broking said,"Today again we saw that gold has touched the lifetime high at Rs 52.435 levels. In international market, it touched life time high of $1981.10 per ounce levels. Silver also touched eight year high of Rs 67,560 levels. Geopolitical tensions between US & China and weakness in dollar supports bullion price. Dollar is weakening against all major currencies at 93.60 level. US Bonds yields are also low which support the safe haven demand for bullion. We expect this rally in bullion will continue and gold and silver will move further upside. Gold may test Rs 53,000 levels and silver Rs 70,000 levels soon."
Geojit Financial in its daily report said, "As prices cleared the all-time high of $1920, expect a gap up opening and prices likely to surge towards the next resistance of $2000. A direct drop below $1880 could negate the trend while immediate reversal point is seen at $1860."
On silver, the report said, "Bullish rallies to continue with prices likely to find resistance near Rs 65000. Next upside obstacle in the London spot market is seen at $24.60 followed by $28. Weak bias expected only if prices break the support of $19.20. On MCX Silver August, the brokerage expected resistance at Rs 65,000/74,000 and support at Rs 56,400."
In India, domestic coronavirus cases saw a record jump of nearly 45,000 infections over the last 24 hours and came to 14.8 lakh by Tuesday morning, with total deaths standing at 0.33 lakh. Worldwide, there are 166 lakh confirmed cases and 6.56 lakh deaths from the coronavirus COVID-19 outbreak.