Gold smashes record high as safety rush intensifies

Marco Green
August 8, 2020

Surging Covid-19 cases in the United States have dampened hopes for a nascent economic recovery and weighed on rival safe-haven USA dollar.

The precious metal hit a record high of Rs 77,949 per kg during the day but shed some of its gains. Weakness in the dollar also drove investors to the safe-haven asset.

Gold prices jumped on Friday to Rs 55,350 from Rs 54,700 per 10 gram, while silver climbed to Rs 73,500 from Rs 71,500 per kilogram, according to Good Returns website.

Gold can still end the year at $2,200-$2,300, he added.

After hitting record highs, both gold and silver slipped into the negative territory. USA gold futures rose 0.6 percent to $2,081.60.

Comex gold was trading flat at $2,031 per ounce, after hitting an all-time high of 2,050.20 in the previous session.

Spot gold was up 0.3 per cent at US$2,068.32 per ounce by 0035 GMT, having hit a record high of US$2,072.50 in early Asian trade.

At 11:25 am, gold futures for October delivery rose 0.06 percent to Rs 55,880 per 10 grams as against the previous close of Rs 55,845 and opening price of Rs 55,965 on the MCX.

24-carat gold prices in the national capital rose to Rs 53,710 per 10 gram.

Analysts believe that worldwide gold and silver are witnessing gains continuously as investors continue to remain buyers of the metals amid worries about recovery in the pandemic-ravaged global economy. "Unless global economy starts its recovery path, precious metals will continue to shine for the rest of 2020".

The average daily turnover (ADT) volume in silver so far in the current quarter has risen past Rs 15,000 crore from below Rs 4,000 crore a year ago.

Gold jewellery prices vary across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges. The gold prices were boosted by worries over global economic fallout from spiking coronavirus cases and a softer dollar.

Amid lesser participation of investors in broader equity indices, and more inclination towards precious commodities, many market analysts have turned bullish for the metal in the coming week.

Other reports by Click Lancashire

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