Gold Prices Top Rs. 56000/10gm, Silver Prices On Course To Hit Rs. 78,000/Kg

Gold price in India in Friday's trade (August 7, 2020) have scaled to a new high as internationally prices have hit a new all-time high. On the MCX, gold topped Rs. 56191 per 10gm and later was trading weak with loss of 0.12% at Rs. 55776 per 10gm. Silver in line is on course to hit Rs. 78000 per kg in the futures market.

International gold rates

Internationally, gold hit a new all time high today as safe haven demand for gold remains strong on the back of weaker dollar, declining US treasury yield and concerns over economic growth amid rising coronavirus cases. Spot gold at around 0035 GMT traded higher by 0.3% at $2068.32 per ounce, after hitting a record high of $2,072.50 in early Asian trade.

Gold is on course for its ninth consecutive weekly bullion. Thus far, bullion has been up by over 4.7% this week.

The dollar index has been maintaining close to its over 2-year low and is failing to bounce back given the grim economic outlook. Also, at the same time, benchmark 10-year yield fell to its lowest level in 5 months.

Globally coronavirus caseload continues to spike with a total tally at 18.94 million, while India has now surpassed 2 million cases.

What Should Investors In Gold Do?

While long term gains or upside in gold cannot be ruled out given the ample liquidity and other uncertainty relating to geo-political and economic risks, in the short term investors can resort to profit booking in the yellow metal, and wait for any substantial correction for taking position in gold.

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