Buyers wanting to tap on the probable capital appreciation in the metal should use every dip in price in gold to invest in the yellow metal targeting a price of Rs. 65000 per 10 gm in the short to medium term.
Investors chasing the over-priced equity markets are betting big on gold as an hedge against economic uncertainty. Bucking the trend, silver September futures have hit a 7-year high of Rs 60,782 per kg on MCX.
Spot gold was up 0.9% at $1,857.86 per ounce by 0232 GMT, after hitting its highest since September 2011 at $1,865.35 earlier in the session. "The safe-haven investment demand further went up as US President Donald Trump has said the coronavirus situation could worsen before it gets under control", he added.
Analysts said that prices of both precious metals went up reflecting the upward trend in the worldwide market, amid rise in safe haven investments.
Gold soared to a nine-year peak on Wednesday as an escalation in US- China tensions stoked demand for safety, while silver followed bullion's rally to hit a near seven-year high on hopes for a recovery in industrial demand. U.S. gold futures rose 0.7 percent to $1,856.80.
Gold futures for August delivery rose 1.5 per cent to settle at US$1,843.90 an ounce at 1:30 p.m. on the Comex in NY, the highest closing price for a most-active contract since September 2011.
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"Gold has rallied to record high levels reflecting firmness in the global market, where prices have been on a rise for the last few months but picked up pace amid sharp losses in the dollar, additional stimulus measures and robust investor inflows".
Analysts are upbeat on gold and silver prices going ahead. "Soft Dollar, stimulus packages from the European Union and the U.S. have underpinned the yellow metal", said Jigar Trivedi, Fundamental Research Analyst at Anand Rathi Shares and Stock Brokers.
"Silver spot prices have outperformed gold so far this month, an interesting reversal of the norm", said Cailin Birch, global economist at the EIU.
Stimulus measures by central banks have added to the momentum too.
"Gold has managed to break through the $1,818 mark this week, as this precious metal pushes into a fresh eight-year high on the way to the [September 2011] $1,921 record high", London-based IG senior market analyst Joshua Mahony said yesterday.