Gold prices today rise, silver surges over ₹2,000 in just 2 days

Gold prices today rise, silver surges over ₹2,000 in just 2 days

Gold investors in dreamland.

Gold prices continued to ascend on Tuesday, reaching their highest levels in nine years, as a softer USA dollar and expectations of more stimulus measures to resuscitate pandemic-hit economies provide further support for the safe-haven metal.

Spot gold wasat $1818.53 per oz after earlier hitting a high of $1820.06. Gold futures are less than US$100 away from the all-time high of US$1,923.70 set that year.

Spot gold is one of this year's best performing assets, with prices up nearly 20%.

"Perhaps the biggest threat to prices is ongoing weakness in Asia, with increased scrap", independent analyst Ross Norman said.

European Union leaders appeared to near an agreement on Monday on a 750-billion-euro stimulus plan for regional economies hard-hit by the pandemic. At the same time, the USA dollar index slid 0.54 percent and neared its lowest point in two years.

Gold is finding support from discussions about new fiscal stimulus, UBS analyst Giovanni Staunov told Reuters.

Gold tends to benefit from widespread stimulus as the metal is widely viewed as a hedge against rising prices and currency debasement.

"The more uncertainty over the control of the virus and by association the global economy, the more bullish for gold", StoneX analyst Rhona O'Connell said, adding that prices could reach record levels above US$2,000 in 2021.

Projections for average silver prices rose to US$17.50 an ounce for 2020 and US$20.03 for 2021, up from US$16.56 and US$17.87, respectively in April's poll.

While gold prices have garnered all of the attention lately, silver has been the big victor since precious metals bottomed in March. "It is only a matter of time for fresh" highs in USA dollars, they said, adding that silver will also enjoy a price surge. In the previous session silver hit a high of Rs. 54000 as there was seen a recovery in industrial demand as well as supply concerns in Latin America as supply chain remain disrupted.

The two metals are the top performers in the Bloomberg Commodity Index this year as investors clamor for insurance against further economic fallout from the virus. Other precious metals also advanced on Tuesday, with palladium futures gaining 3.7 per cent on the New York Mercantile Exchange and platinum climbing 7.1 per cent, the most since April.

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