Gold, silver are surging to multi-year highs on virus spreading


Spot gold was up 0.1% at $1,874.21 per ounce by 0646 GMT, after declining earlier in the session on mild profit-booking after prices hit their highest since September 2011 at $1,876.16. Likewise, silver also surged 6 per cent from the previous close of Rs 57,342 to record Rs 60,782. At 2.30 pm, silver was trading at Rs 58,829 per kg.

Kishore Narne, Head, Commodities & Currencies, Motilal Oswal Financial Services, said: "We expect the anaemic economic growth to intensify protectionist policies and aggravate trade wars, which would support high gold prices".

Now that the dollar is weakening, the US dollar-denominated precious metal is becoming more attractive for overseas buyers with stronger currencies.

In overseas market, spot gold jumped more than 1% on Wednesday to its highest in almost nine years, driven by a weaker dollar and safe-haven buying.

European Union leaders on Tuesday sealed a 750 billion euro recovery plan, while White House officials and top congressional Democrats discussed another round of relief that would include extended unemployment insurance and more money for schools, the report added.

Spot silver futures in global markets climbed as much as 7.2% to $22.8366 an ounce, the highest since 2013.

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Development hopeful Northern Dynasty Minerals (TSX: NDM) was another market riser, up about 12% as it anticipates near-term approvals for its Pebble project and outlined expected average annual production over 20 years of 318 million pounds of copper, 362,000oz of gold, 14Mlb molybdenum and 1.8Moz of silver.

"After the breakout earlier this week, gold has managed to hold above the $1850/oz and is likely to move towards the key $1900/oz level". But, since mid-March, the price of the yellow metal against the USA dollar has surged over 20 per cent.

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Continuing the upward trend, gold prices in India inched higher on Thursday as global prices continue to rise.

Gold will push toward record highs over the next 18 months, a Reuters poll showed, while low jewellery sales in Asia and the prospect of economic recovery will hinder further gains.

Analysts said that prices of both precious metals went up reflecting the upward trend in the worldwide market, amid rise in safe haven investments.