Gold price got you worried? As records tumble, will your money be in danger? Get a shot of comfort here

Gold Price is rising by the day. In fact, not a day goes by when it does not touch a new all-time high! Records are tumbling left right and centre and those who are looking to make money from the yellow metal are a bit worried about safety of their funds in case they bet on this precious metal now. 

Well, gold is a safe haven buy. In short, people guard against unforeseen events and financial emergencies by buying it. They buy especially when there is danger. This boosts gold price. Right now, the entire world is  facing the worst crisis in decades in the form of Covid 19 pandemic. Then there is US-China tension and more. 

So, should people buy or should gold price today make them run for the hills, so to speak?

Gold Price Outlook

The outlook for the yellow metal continues to remain strong amid the rising US-China tensions and the spike in the number of coronavirus cases, Senior Technical Analyst Anuj Gupta said. This is also leading to a rising dollar further making the precious metal dearer. 

August MCX gold futures today attained a life time high of Rs 53670 in the intraday trade. At 12:45 pm, the gold futures were trading at Rs 53,600 per 10 gram up by almost 0.3 percent from the previous close on Friday. 

Another Historic High Expected

Gupta, who is a Deputy Vice President, Commodity and Currency Research at Angel Broking, said that the outlook remains positive and the gold futures will likely touch Rs 54,500 by the end of this week. He said that the estimate is conservative as the international gold price is seeing a resistance around USD 2000. 

Once this psychological barrier is breached the domestic prices may see a good spike, further, the technical analyst said. 

In the international market, the precious metal attained a life time high of USD 1987. 

As for MCX Silver, the September Silver Futures may test the Rs 70000 mark by the end of Friday’s trading session, he said. Today, Silver Futures were trading around Rs 65,629 per one kg, up almost 1 per cent from the previous close of Rs 64984. The intraday high was Rs 65,951.  

Gold Price Triggers 

"The sentiment across markets is deteriorating. First of all, rising infection rates are a real concern for the globe and a real support for gold prices. Given that, it is also driving U.S. dollar higher," Reuters reported quoting Michael McCarthy, chief strategist at CMC Markets. 

"Gold also saw safe-haven demand as the federal unemployment bonus expired on Friday, which would affect U.S. consumer income and spending and the U.S. Central Bank would thus remain dovish," Phillip Futures analysts said in a note.

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US-China tensions have dented hopes for a swift economic recovery, driving inflows into safe-haven assets such as gold, which climbed 30 per cent so far this year, this report said.