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Gold keeps Shining, crosses 50k Mark to make a Fresh New High

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Gold is considered a haven for investors during hard times and market crashes. Since the market crash in March, Gold as an investment asset has given a high return to investors.

Although V-shaped recovery in the market and Nifty maintaining its tempo above 11k mark, Gold is still shining and making record highs.

This Wednesday, Gold prices in Indian markets made a record high for the second day in a row. August Futures on Multi Commodity Exchange (MCX) cost 50,000 Rs per 10 grams for the first time. August Futures rose nearly 1% to a new high of 50010 Rs.Gold keeps Shining, crosses 50k Mark to make a Fresh New High

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Rising Corona Virus cases in India and Rising Unemployment is considered to be the main reason behind this rise. Also, the Indian government’s economic stimulus has seemed to fail at grounds. Thus, people are panicked about an economic slowdown and further crash in markets.

The Spot Price of Gold, as per MCX statistics, was 50,005 at the time of writing the article. Gold keeps Shining, crosses 50k Mark to make a Fresh New High 

While the precious yellow metal is attracting investors with its shine, the beloved white (Silver) has given more returns than the Gold.

Silver Jumped 6% on Wednesday to reach the high of 61,130 Rs per kilogram.Gold keeps Shining, crosses 50k Mark to make a Fresh New High

Spot Price of Silver at the time of writing the article

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Author’s Note:

The movement of Gold to 50k was predicted in the previous article over the precious yellow. Gold Shines to an All-time High as the Second Wave of Pandemic haunts Investors

Overall, both the fundamental and technical backdrops for gold prices remain robust. Thanks to expansionary monetary policy and thus far underwhelming fiscal policy responses, mixed with the global economic uncertainty brought about by the coronavirus pandemic, real yields continue to fall and remain depressed. An environment defined by depressed and negative actual returns has historically proven bullish for precious metals.

Gold now at 50k levels, I am still bullish over it. I suggest buying Gold at dips with an SL at 48000 levels. Target will be near 58K degrees. Gold prices are expected to surge till March- April Next year, considering the further dips in investing instruments due to economic slowdown, which will follow the pandemic.

Disclaimer:

The Content is for informational purposes only; you should not construe any such information or other material as legal, tax, investment, financial, or other advice. The Author is not a registered Advisor or a legal entity.


There are risks associated with investing in securities. Investing in stocks, bonds, exchange-traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves unique risks, including higher volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

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