Gold and silver prices are expected to remain bullish. According to the bullion experts, both yellow and white metal are expected to remain investors’ haven.
Gold and silver prices are expected to remain bullish. According to the bullion experts, both yellow and white metal are expected to remain investors’ haven as both the US Federal Reserve and the International Monetary Fund (IMF) have given weak outlook for the US and the global economy. They said that since the global equity market is under pressure as the COVID-19 pandemic is still around, the precious metal will remain bullish and investors’ favourite for the next one to two months.
Speaking on the reason for rise in the gold and silver price Prithviraj Kothari, National President at India Bullion and Jewellers Association (IBJA) said, “Gold price is rising because investors are still not sure about equity and other investment tools and their outlook as Coronavirus is still looming around. Therefore, big investors are pumping their surplus money into gold and silver buying. Apart from this, the global economy is also feeling the heat of Coronavirus and to maintain liquidity into the markets, the majority of the central banks are printing their national currency that includes the US too. So, this has led to rise in inflation that is also supporting the gold and silver price rally.” The IBJA National President went on to add that precious bullion metals will continue to go northward till the Coronavirus vaccine is not launched.
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On the global triggers that are supporting gold price, Amit Sajeja, Associate Vice President at Motilal Oswal said, “In international markets, gold price has sustained above $1,750 per ounce levels, which means it has broken its previous range of $1,690 per ounce to $1,750 per ounce mark.” Sajeja said that gold price will pull silver price on the upper side as both the precious metals have become favourites of investors globally. He said that the increase in geopolitical tension between the US, China, India and Iran are also supportive of the bullion rally.
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