Gold price today hits life-time high of Rs 55,220; experts predict Rs 60,000 level soon

Gold price in India: On account of one sided physical gold buying in the US and other parts of the world, weak US economic outlook and rising US-China tension, gold price has been skyrocketing and peaking at new highs on a daily basis. Today, the yellow metal hit yet another high of Rs 55,220 per 10 gm at the Multi Commodity Exchange (MCX) while in the international markets, it breached $2,000 per ounce. Silver price too is oscillating around Rs 70,000 per kg while in the international markets, the yellow metal has broken $25 per ounce mark.

According to the bullion and commodity experts, 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 India, they said that gold price is expected to showcase Rs 60,000 per 10 gm while silver is poised to hit Rs 80,000 per kg mark by the end of August.

Speaking on gold, silver prices hitting life-time highs and the triggers involved in this rally, 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, silver and platinum as investment haven that has triggered bulk physical buying by big investors across the world." 

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In his outlook for gold and silver, 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 will touch Rs 60,000 per 10 gm while silver may go up to Rs 80,000 per kg.

Highlighting the reasons for rise in gold and silver prices, 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 teh Coronavirus vaccine test.