Gold price climbs to all-time high of Rs 53,429; Silver near 65K; experts predicts further rise

The historic rally in gold is continuing apace! Gold price today climbed to its all-time high of Rs 53,429 at the Multi Commodity Exchange (MCX). However, silver prices dipped Rs 369 per kg and hit Rs 64,985 per kg level. According to experts, this regular skyrocketing in the bullion metal prices is because of the weak dollar, geo-political tension and bullion staying on as investors' haven. They said that the yellow metal has given more than 10 per cent returns in the US markets which has fuelled one-sided buying in the precious metal. Commodity experts were of the opinion that such rising trend in the gold and silver prices is expected to continue in the current quarter and by the end September 2020, gold price may hit Rs 55,000 per 10 gm mark while silver price may hit Rs 70,000 per kg at the MCX.

Highlighting the reasons for rise in gold and silver prices, Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking said, “Today again we saw that gold has touched a life time high at Rs 53,429 and in international market it has already touched the life time high to $1981.10 per ounce levels few days ago. Geopolitical tension between the US and China and weakness in the dollar supports bullion. Dollar is weakening against all major currencies at the Dollar Index. 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. In the international Market Gold price may test $2000 and Silver may test $30 soon.”

Speaking on the triggers that are aiding gold and silver price rally, Prithviraj Kothari, National President at India Bullion and Jewellers Association (IBJA) said, "Today, dollar returns in the US have become almost zero while the gold has given around 10 per cent returns. So, global investors are fishing out their money from other investment tools and pumping it into bullion. They are doing one-side buying, which is leading to gold and silver scaling its all-time high." 

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On what would be the possible target for gold and silver that he is looking at in next one quarter, Kothari said that silver is expected to hit Rs 70,000 per kg while the gold price is expected to touch Rs 55,000 per 10 gm (without including the landing charges)."