Gold price climbs all-time high of Rs 52,414; Silver also at life-time high; experts predict further rise

Gold price today climbed to yet another all-time high of Rs 52,414 at the Multi Commodity Exchange (MCX) even as silver prices too hit a record high of Rs 67,560 per kg.

According to experts, this regular skyrocketing in the bullion metal prices is because of the weak dollar, geo-political tension and bullion remaining strong as investors' haven. Photo: PTI

Gold price today climbed to yet another all-time high of Rs 52,414 at the Multi Commodity Exchange (MCX) even as silver prices too hit a record high of Rs 67,560 per kg. According to experts, this regular skyrocketing in the bullion metal prices is because of the weak dollar, geo-political tension and bullion remaining strong as investors' haven. They said that gold has given more than 10 per cent returns in the US which has fuelled one-sided buying in the precious metal. Experts were of the opinion that such rising trend in the gold and silver prices is expected to continue in the current quarter and by the end of September quarter, gold price may showcase Rs 55,00 per 10 gm while silver prices may hit Rs 70,000 per kg.

Speaking on the reasons for rise on gold and silver prices, Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking said, “Today again we saw that gold has touched a life-time high of Rs 52.435 levels and in international market it touched the life-time high of $1981.10 per ounce levels. Silver also touched the 8 years high of Rs 67,560 levels. Geopolitical tension between the US and China and weakness in the dollar is supporting bullion. Dollar is weakening against all major currencies. US Bonds yields are also low which support the safe haven demand for bullion. We expect this rally in bullion to continue. Gold may test Rs 53,000 levels and silver Rs 70,000 levels soon. In the international Market Gold may test $2000 and Silver may test $30 soon.”

On triggers that are aiding gold and silver price rally, Prithviraj Kothari, National President at India Bullion and Jewellers Association (IBJA) said, "Today, dollar returns in the US have become almost zero while the gold has given around 10 per cent returns. So, global investors are fishing out their money from other investment tools and pumping it into bullion. They are doing one-side buying, which is leading to gold and silver scaling its all-time high."

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On what would be the possible target for gold and silver that he is looking at in next one quarter, Kothari said that silver is expected to hit Rs 70,000 per kg mark, while gold price is expected to touch Rs 55,000 per 10 gm (without including the landing charges)."

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