Gold prices in India on Wednesday (August 5, 2020) surge high again on softer dollar and stimulus being deliberated in the US to a high of Rs. 54797 per 10gm on the MCX. While silver also climbed to now move past Rs. 70000 price level. Notably silver has hit a high of Rs. 75000 per kg in the year 2011. And now with a relentless rally in gold, there are hopes that silver too shall cross this peak given the current momentum.
Gold Price In India On August 5, 2020
In the previous day's trade, gold futures for delivery in October jumped to a high of Rs. 54612 per 10 gm, while silver climbed a whopping Rs. 4049 or over 6% to now hit price of Rs. 69797 per kg.
Now, gold is close to hit Rs. 55000 per 10 gm.
Gold and Silver Prices In Global Market
Global gold rate smashes past psychologically important price of $2000 per ounce
Spot gold has ralllied past psychologically important level by rising 1.7 per cent to $2,009.61 an ounc. Bullion for immediate delivery surged 11 per cent in July, the biggest monthly gain since 2012.
Gold in the global market on August 4 hit a life time high of $2000 per ounce as calls on another round of US stimulus progressed as per the indication of the top US Senate leader who said Democrats and the White House are close in reaching the consensus of the stimulus bill.
US gold futures rose 1.4% to hit an all-time high of $2,014.20 while spot gold rose to a record $1994.86 per ounce.
This is owing to resort of investors in the safe haven amid a time when real interest has rather become negative and global central bank stimulus bail out is debasing the currency. Though the debasement in dollar has not helped stocks of emerging markets that much.
Another trigger attracting investor's demand is the massive explosion at Lebanon's main port on Tuesday.
Silver's lustre on robust factory data
Silver too on robust factory data jumped by over 4% higher to $25.43 per ounce. In India silver in the futures market has touched a high of Rs. 70429 per kg for the September contract.
The confirmation that there is progress on fresh US bail out has again led gold to a new high to now top $2000 per ounce levels, said Tai Wong, head of base and precious metals derivatives trading at BMO.
"The market is being well supported by the likelihood of additional stimulus in the U.S; stimulus continues to pressure the US currency, in addition to that US-China tensions is adding a bit of safe haven demand," said David Meger, director of metals trading at High Ridge Futures.
Though gains in gold were to an extent capped by good increase in orders for US made products.
Enough forecast of further upside in gold price
While a near term correction in gold price cannot be ruled out or should not be underestimated, there are enough calls by global investment entities such as Goldman Sachs which predicted a run up up to $2300 per ounce for gold price as investors are "in search of a new reserve currency.
Another highly optimistic bet is at $3000 by RBI Capital Markets.