Gold Prices Continue To Edge High As Global Price Near 9-Yr High; Silver Hits Rs. 55050/ Kg

In India, gold prices continue to gain on dollar weakness. In the futures market, gold of August delivery was up 0.1% at Rs. 49074 per 10 gm.

Silver gains further to levels of Rs. 55050 per kg, after a 1.94% or Rs. 1045gain. In the previous session silver hit a high of Rs. 54000 as there was seen a recovery in industrial demand as well as supply concerns in Latin America as supply chain remain disrupted.

Gold prices continue to trade higher after edging to near 9-year high in the previous session, silver also hit a 4-year high. Gold prices remain supported due to spike in corona cases as well as expectations of additional stimulus measures to combat the fall-out.

Spot gold wasat $1818.53 per oz after earlier hitting a high of $1820.06.. U.S. gold futures rose 0.1% to $1,819.

Gold's gaining popularity exponentially right now, just because of all the inflationary aspects: the yield curve, money printing, worries about the economy and COVID," said Michael Matousek, head trader at US Global Investors.

Meanwhile, dollar index's weakness to 4-month low is also driving precious metal's prices higher.

"When you see something (happen) in the bull market, you want to buy the pullbacks. ... You have a lot of people targeting the $1,825 level; if it breaks above, it could go higher."

In September 2011, gold in international market hit a high of $1920.30 per ounce.
Also the EU is considering a bail out package of $2 trillion that may also keep the bullion supported.

The corona situation is only getting worse and the US Centers for Disease Control and Prevention has come up with a warning that cases and deaths could rise this autumn and winter.

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