Gold price trades near record-high; silver scales Rs 65K mark

Gold, Silver prices today on August 3: Gold price in India was trading near record high today, tracking strong cues from the international commodity market, as US lawmakers struggled to hammer out a new stimulus plan. Weakness in the dollar also helped the bullion inch higher. The rapid rise in virus cases also dampened hopes for an economic recovery, making investors rush to safe-haven assets.

Supported by upbeat safe-haven demand, Gold August futures on Multi Commodity Exchange were trading higher by Rs 110 to Rs 53,555 per 10 gm against the previous close of Rs 53,445 per 10 gm, after touching an intraday high of Rs 53,565. In the previous session, Gold August Futures touched an intraday as well as an all-time high of Rs 53,700 per 10 gm.

On a similar note, Silver September futures gained Rs 607 to trade at Rs 65,670 per kg today, after hitting a lifetime high of Rs 67,672 in the last week.

Gold prices have surged 35% this year, hitting new high in India. Escalating tensions between the US and China, expectations of more stimulus measures on hold, a weak US dollar and rise in cases of coronavirus infections across the globe have kept demand for gold high.

Gold price trades near record-high amid rise in Covid-19 cases

Global markets

Overseas, bullion price rose to an all-time high today. Spot gold gained 0.1% at $1,976.47 per ounce, after hitting a record high of $1,984 earlier today while silver eased 0.1% to $24.35 per ounce. Comex gold was trading 0.45% higher at $1,971 per ounce, after hitting all-time high of 1,84.30 an ounce earlier today.

Gold also gained on the back of US dollar index that traded close to more than two-year lows against the basket of six currencies.

In India, coronavirus cases neared 18.05 lakh with total deaths standing at 38,176. Worldwide, there are 182 lakh confirmed cases and 6.9 lakh deaths from the coronavirus COVID-19 outbreak.

Retail gold rate in India

24-carat gold prices in the national capital rose by Rs 10 to Rs 53,470 per 10 gram on Monday amid rupee depreciation.

The price of 24-carat gold stood at Rs 56,510 per 10 gram in Chennai. In Mumbai, the rate was Rs 52,510 for 24-Carat gold, as per Good Returns website.

Valuation

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

On MCX Gold's near term outlook, Kishore Narne, Associate Director & Head, Commodities & Currencies, Motilal Oswal Financial Services said,"We have been bullish on gold for the last couple of years and the view has played out very well. Two quarters back in December 2019, we have revised our targets from Rs 42,000/10gms to Rs 65,000/10 gms in 18-24 months. We expect gold to keep up the momentum with occasional corrections, and we suggest investors to use every dip to keep buy gold over medium to long term targets of Rs 65,000."

Global commodity analysts are predicting the price of the yellow metal to breach $1,980 mark and touch $ 2000 level soon, facing resistance in the short term.

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