Gold zooms to another record high


Gold prices scaled a fresh record high at $2,059/oz, pushing up prices in key consumer India to an unprecedented Rs 56,000/10 grams.

“Gold is on a rocket. Investors are piling in like there is no tomorrow,” said Haresh Acharya, managing director at Parker Precious Metals LLB.

“Majority of buyers want either 100 gram coins or kilogram buyers. There is very little demand for jewellery,” he said.

Gold is also in demand from Exchange Traded Funds and fund houses offering gold bonds. Many investors have shifted allocations to bullion from stocks.

Gold-backed ETFs and similar products recorded their eighth consecutive month of positive outflows worldwide in July, equalling $9.7 billion or 4.1% of assets under management. Global holdings reached a new all-time high of 3,785 tons.

Global net inflows of 899 tons ($49.1 billion) are considerably higher than previous annual highs, and the trend of inflows has continued in the first few trading days of August, according to the World Gold Council.

Gold prices have been on a tear, gaining momentum amid the covid pandemic and growing political tensions between US and China as well as in other countries. 

No stopping

There has been no stopping gold since it breached above the historic high of $1,924/oz in late July. It has surpassed expectations by crossing past the psychological mark of $2,000/oz.

The latest trigger for gold’s rally has come from fast-spreading covid outbreaks. The tally of infections has crossed two million in India, putting it at the third-highest level.

Silver prices have also rallied smartly in gold’s wake and was trading at a more than seven-year high at $28.54/oz in global markets ans a record high of around Rs 77,000 per kilogram in India.

Precious metals appears on a solid growth path with central banks globally pushing liquidity to alleviate the economic damage wrought by the covid pandemic. 

Uncertainty around the upcoming US presidential poll is expected to help the rally in gold and silver. Gold and silver are seen as store of value during times of uncertainty.

Gold often is seen as an alternate currency to the dollar, which serves as a reserve international currency. A lower value of the dollar tends to push up prices of gold 

Biman Mukherji is a columnist and consulting editor at He has worked for international news organisations such as Reuters, The Wall Street Journal as well as for newspapers like The Times of India. He can be reached at

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