Gold price hits new high on 13th consecutive day! Silver soars to Rs 72,980 per peak

Gold price is still skyrocketing! Yellow metal has hit yet another all-time high and that too for the 13th consecutive day on Wednesday. It recorded the new high at Rs 55,597 per 10 gm at the Multi Commodity Exchange (MCX). Silver price too continued to rally and climbed to its life-time peak of Rs 72,980 per kg mark. According to bullion experts, this rally is expected to continue for the entire August month as global markets are losing faith in the US economy. They said that rising tension between the US and China has also supported this gold rally. 

The bullion and commodity experts went further and said that gold price in international markets may hit $2,200 per ounce while silver is expected to hit $30 per ounce by the end of August. In Indian markets, they said that gold price is expected to climb Rs 60,000 per 10 gm while silver is poised to peak Rs 80,000 per kg by the end of August.

Speaking on the gold and silver price outlook, Prithviraj Kothari, National President at India Bullion and Jewellers Association (IBJA) said, "Gold and silver prices are rising due to the one-sided physical buying by US-based big investors. Since, the dollar has been nosediving and bond yield has almost gone negative, big investors have found gold and silver investment haven that has triggered bulk physical buying by big investors across the world." 

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Giving his outlook for bullion, Kothari said that by the end of August 2020, gold price in the international market may go up to $2,200 per ounce while silver may hit $30 per ounce. In the Indian markets, Kothari said that gold price may touch Rs 60,000 per 10 gm while silver may go up to Rs 80,000 per kg.

On why gold and silver prices have been rising at such a rapid speed, Anuj Gupta, Deputy Vice President at Angel Broking said, "The global markets are losing faith in the US economy that has led to dollar crash at the Dollar Index. This crash in dollar has led to lower yield in bonds and other investment tools that resulted in emergence of gold, silver and other precious metals as investors haven. Apart from this, fresh tension between the US and China has added further fuel in the gold, silver price rally." 

Gupta said that this gold, silver price rally will continue at least for the current quarter till there is some concrete positive news coming in on the Coronavirus vaccine test.