Gold price on record-breaking spree, climbs life-time high for 15th successive day; silver near Rs 78K level

Gold price today hit yet another all-time high of Rs 56,191 per 10 gm at the Multi Commodity Exchange (MCX). This is for the 15th successive day when gold price has broken its own life-time high record. In this period, silver price too appreciated and came close to Rs 78,000 per kg after it hit its fresh all-time high of Rs 77,949 per kg. According to experts, this rally in precious metals is expected to continue till August end. They said weakening the US economy, crashing US dollar and rising US-China tension is adding additional support to the gold and silver price rally.

The Commodity experts went on to add that in the international market gold price is expected to touch $2,200 per ounce levels while the silver price may showcase $30 per ounce. In the domestic markets, they predicted that the gold price will hit Rs 60,000 per 10 gm while the silver price will climb up to Rs 80,000 per kg.

Highlighting the reasons for rise in gold and silver prices Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies at Angel Broking said, "Gold, the safe haven asset, the go to asset for investors in times of uncertainty has been on a ride with absolute returns of more than 34 per cent 2020 YTD (Year to Date). Low yields in the US treasuries, low interest rates and massive amount of liquidity pushed by major central banks across the globe has resulted in euphoria for the yellow metal."

See Zee Business Live TV streaming below:

Mallya went on to add that the COVID-19 pandemic has slowed the global economy drastically because of which the belief of investors in gold has risen and this faith will continue to bring in more momentum in prices in the months ahead, unless, global economy shows any signs of green-shoots of recovery.

Highlighting the triggers adding fuel in gold and silver price rally, Prithviraj Kothari, National President at India Bullion and Jewellers Association (IBJA) said, "We are witnessing a sweet spot in gold and silver price rally because bullion has emerged as investors' haven. Nowadays, the dollar has hit its nadir while bond yield is almost in a negative zone. So, big investors are pumping their money in physical gold and silver." 

On his prediction for gold and silver price by August-end Kothari said that gold price will hit Rs 60,000 per 10 gm while the silver price is expected to climb up to Rs 80,000 per kg.