Gold price scales fresh high of Rs 56,143, silver above Rs 77K

Gold price zoomed to a fresh high today as rising coronavirus cases and ongoing tensions between the US and China helped the yellow metal stay in demand. At home, coronavirus cases surpassed 20 lakh mark today, with total deaths standing at 0.41 lakh weakening sentiment in equity market.

Gold August Futures touched an intraday as well as an all-time high of Rs 56,191 earlier in the session today.

After 6 consecutive bullish sessions, Gold futures on Multi Commodity Exchange were trading Rs 15 lower at Rs 55,830 per 10 gm against the previous close of Rs 55,845 per 10 gm.

Silver September futures was trading Rs 298 higher at Rs 76,350 per kg today, after hitting a lifetime high of Rs 77,949 earlier in today's session.

Gold prices have been hitting a record high in global markets amid escalating tensions between US and China, expectations of more stimulus measures on hold, a weak US dollar and rise in cases of coronavirus infections across the globe.

Volatile global equities have also kept demand for the risk-averse asset high. Halt on fiscal aid negotiations in Washington coupled with pending US job data today as kept equities cautious today. Projections of slower economic recovery from the virus impact by Bank of England also weighed on the sentiment.

Gold price trading near record high; silver scales Rs 73K mark

Global markets

Overseas, gold price steadied today after hitting a record high.

Spot gold hit a record high of $2,075.2 per ounce today and last stood at $2,064. Meanwhile, Comex gold was trading flat at $2,031 per ounce, after hitting an all-time high of 2,063 in the previous session.

Silver has hit a seven-year high of $29.8384 per ounce this week, having gained 60% so far this quarter.

Retail gold rate in India

24-carat gold prices in the national capital rose to Rs 55,360 per 10 gram. The price of 24-carat gold stood at Rs 58,330 per 10 gram in Chennai. In Mumbai, the rate was Rs 54,810 for 24-Carat gold, as per Good Returns website.

Valuations

Geojit Financial in its commodity report said," Doubts of recovery in the pandemic ravaged global economy and recent murky US Job data continue to support precious metal prices. Both Gold and silver in the international market gained further, with gains around 0.50 percent and 2.70 percent respectively."

On Gold's outlook, Geojit Financial added," Outlook continue to be on the bullish side and it may look towards $2080/2145 levels as long as it stays above the key level of $2000. How-ever, an unexpected turn below $1920 could negate the extreme bullish outlook and may see corrective selling pressure. For MCX Gold Oct Futures, the brokerage said resistance is estimated at 57,110 and support is expected at 54,360

For MCX Silver Aug futures, resistance is placed at 78400/89000, while the support is at 71,500.

Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking said," Gold has been really precious for investors in 2020 with an astounding double-digit return of 34% YTD in dollar terms and still continues its shine. The liquidity push by Central Banks across the globe has been a deciding factor for premium in gold prices as the pandemic continues to ravage the global economy. The easy money policy is resulting into chasing higher yields on asset classes which are considered to be safe in times of uncertainty, and nothing like gold, the safe-haven asset which has historically been a go-to investment for investors. Unless the global economy starts its recovery path, precious metals will continue to shine for the rest of 2020."

Precious metal prices have been surging to fresh record highs in domestic as well as international commodity markets, amid intensifying economic concerns due to the COVID-19 pandemic. Worldwide, there are 189 lakh confirmed cases and 7.17 lakh deaths from the coronavirus COVID-19 outbreak.

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.

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