New Delhi: Gold prices today continued their recent rally, rising by Rs 150 to this year’s high of Rs 32,500 per 10 grams. Buying by local jewellers to meet festive and wedding season demand and higher global prices lifted gold prices. The earlier high for gold prices this year was Rs 32,450, hit on May 15. In Delhi, gold of 99.9% and 99.5% purity advanced by Rs 150 each to Rs 32,500 and Rs 32,350 per 10 grams, respectively, their highest level this year. Gold sovereigns too traded higher by Rs 100 at Rs 24,800 per piece of eight grams. Gold prices had risen by Rs 130 on Tuesday.
5 things to know about the gold price rise:
1) On the other hand, silver ready eased by Rs 20 to Rs 39,730 per kg and weekly-based delivery by Rs 50 to Rs 39,010 per kg due to lower offtake by industrial units. Silver coin prices rose by Rs 100 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.
2) In global markets, gold prices edged higher today after hitting their highest in over three months in the previous session, with international political and economic uncertainty supporting the safe-haven demand for the metal. Spot gold rates were up 0.1% at $1,231.27.
3) Globally, gold prices are up over 6% after falling in mid-August to $1,159.96 an ounce - their lowest since January 2017. The recent turmoil in global equity markets, US-China trade tensions and geopolitical risks in the Middle East supported gold prices, said analysts.
4) Gold prices will receive support on mounting geopolitical risk, said domestic brokerage Religare in a note. Capital Economics analyst Ross Strachan said: “We have a whole series of situations in connection with Saudi Arabia and Russia, and trade tensions between US and China, and that has been having a knockdown impact on equities and, in turn, providing support to gold prices.”
5) Bank of America Merrill Lynch strategists have a short-term view on a potential gold rally. “The current environment is one where the precious metal is regaining its prominence as a portfolio hedge and has value now,” they said. “The market is currently very short in gold futures and the likelihood of a relatively less hawkish Fed into year end and 2019 can prop up non-dollar crosses and increase the value of gold.” US President Donald Trump has repeatedly criticized the Fed for rate increases, ratcheting up his rhetoric in recent weeks.
With Agency Inputs