Alert! Rising gold prices may pull silver rates to around Rs 51,000 mark; this is why
According to the experts, big investors in developed countries like the US have moved towards gold and silver post Coronavirus spread.
Gold and silver prices have been rallying strongly post-COVID-19 pandemic spread. While the landing price of yellow metal has crossed Rs 50,000 per 10 gm in the retail bullion markets, silver too has skyrocketed to Rs 49,710 per kg mark. According to the experts, big investors in developed countries like the US have moved towards gold and silver post Coronavirus spread. They said that the majority of the investment tools are hit badly due to the virus and hence both the precious metals are expected to remain favourites for the investors in the short-term time horizon.
Anuj Gupta, Deputy Vice President — Commodities and Currencies at Angel Broking said, "Today, silver prices are trading on a 3-week high at Rs 50420 on the back of increase in investment demand as well as industrial demand. It is also taking cues from the Gold Bullish trend as the yellow metal is trading on its lifetime high at 48,829 levels in the domestic market and on its 12 years high at $1785 per ounce. Increasing coronavirus cases and increase in geopolitical tension between US, India, China and Iran are also supportive for bullion. Lower growth forecasts provide fuel to the bullion. We expect bullion may trade positive in the short term."
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Gupta said that for intraday prospective, traders can go for buy in silver at Rs 50,200 to Rs 50,300 levels with the stop loss of Rs 49,700 levels and for the target of Rs 51,000 levels.”
Speaking on the reason for continuous rise in the gold price, Prithviraj Kothari, National President at India Bullion and Jewellers Association (IBJA) said, "Gold and silver prices are rising because of emergence of bullion as investors' safe haven post-COVID-19 pandemic. Apart from this, the global economy is also under Coronavirus pressure."
Kothari went on to add that to maintain liquidity in the markets, various central banks in the world are printing their national currency that includes the US too. So, this has led to rise in inflation that is also supporting the bullison rally.
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