NewDelhi August 7: Gold prices scaled a fresh peak of Rs 56,191 per 10 grams on Friday, rising for the sixth consecutive day, on the back of the international rates where yellow metal was set for the ninth straight weekly gain. The gold prices were boosted by worries over global economic fallout from spiking coronavirus cases and a softer dollar. Silver is also at multi-year highs and hit a fresh lifetime high of Rs 77,949 per kg. ‘Even though both gold and silver are overbought, there are no signs of topping out on charts. Technically both are due for some correction after the massive rally,’ Bhavik Patel, Senior Technical Research Analyst at Tradebulls Securities, told Financial Express Online.
After hitting record highs, both gold and silver slipped into the negative territory. On MCX, gold October futures were trading flat at Rs 55,840 per 10 grams, while silver September futures declined Rs 330 or 0.43 per cent to rule at Rs 75,722 per kg. According to Patel, some overdue correction with today’s US key economic data of Non-Farm Payroll or continuation of rally till $2100 and $30.50 in COMEX can be witnessed. ‘Our year-end forecast is around Rs 60,000 in MCX Gold and Rs 88,000 in Silver,’ said Patel.
With today’s gain, gold prices are now 46 per cent up from March lows of Rs 38,500 per 10 grams, while silver has now rallied over 132 per cent from Rs 33,580 per kg touched in March this year. On a year-to-date (YTD) basis, gold has delivered a return of 43.20 per cent while silver has given a return of 62.48 per cent. Analysts expect some profit booking today. ‘Investors’ focus will be on the U.S. nonfarm payroll data due later in the day. Profit booking may come on the table but the fundamental background is bullish,’ said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers.
On COMEX, silver prices are at a 7-year high. Globally, spot gold was up 0.3% at $2,068.32 per ounce. US gold futures rose 0.5% to $2,078.70. Among other precious metals, silver jumped 2.6% to $29.68 per ounce, while platinum dropped 0.9% to $988.76 and palladium climbed 0.5% to $2,232.40. Bullion has rallied more than 35% in 2020, putting it on track for the biggest annual gain in over four decades, as the health crisis, negative real rates, a weaker dollar and geopolitical risks spark a flight to precious metals, according to a Bloomberg report.