Gold price to hit Rs 51,000, silver price Rs 53,000 per kg; here is why

Gold price yesterday sustained above $1,800 per ounce levels indicating a fresh rally in the bullion in the wake of fresh global economic outlook reports and increase in Coronavirus cases across globe. According to the bullion experts, the yellow and white metals are expected to scale further as the outlook for the precious metals are still bullish. They said that in the bullion market, gold price will hit Rs 51,000 per 10 gm in a day or two while the silver price will soar up to Rs 53,000 per kg.

Speaking on the gold and silver price outlook, Anuj Gupta, Deputy Vice President — Commodities and Currencies Research at Angel Broking said, "Yesterday bullion was traded on a higher side. Gold increased by 1.19 per cent and silver increased by 0.83 per cent. Safe haven demand is rising due to increased coronavirus cases in the world. Economic slowdown and global growth forecast lowered by IMF are also supportive for Bullion. So, if we add around Rs 1,800 to Rs 2,000 premium in the retail gold and silver market, then  we can expect the gold price to hit Rs 51,000 per 10 gm while the silver may hit Rs 53,000 per kg in the retail sarafa market." Gupta went on to add that in the international market gold may test $1,820 levels and silver may test $18.80 levels soon.

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On triggers aiding gold and silver price rally, Prithviraj Kothari, National President at India Bullion and Jewellers Association (IBJA) said, "In the international market, gold price has sustained above 41,800 per ounce mark means it has made a new range of $1,800 to $1,850 per ounce while silver has got strong support at $18 mark and it has immediate resistance at $20 per ounce mark and after breaking this resistance it can further escalate up to $22 levels." He said that global investors indulge in one sided buying of gold and silver that is supporting the bullion rally globally and in India also we have witnessed good amounts of buying in the COVID fueled precious metal rally.