NEW DELHI: Gold prices rose Rs 900 to a new record high of Rs 77,850 per 10 grammes in the national capital on Wednesday, fuelled by a recovery in precious metal rates in global markets, according to the All India Sarafa Association.
On Tuesday, the precious metal with 99.9% pure closed at Rs 76,950 per 10 grammes. Silver rose Rs 3,000 to Rs 93,000 per kilogramme on new demand from industrial units and coin manufacturers.
The previous closing price was Rs 90,000 per kg.Additionally, gold of 99.5% purity increased by Rs 900 to reach an all-time high of Rs 77,500 per 10 grammes.
The metal had closed at Rs 76,600 per 10 grammes the previous day. Surendra Mehta, National Secretary of the India Bullion and Jewellers Association (IBJA), believes that gold prices in international markets will soon approach USD 3,200 per ounce.Gold’s bull run continues, with futures prices reaching another all-time high of Rs 76,000 per 10 gm.
“Prices remain supported by a weaker dollar, expectation of more rate cuts from global central banks, safe haven demand, and inflow of ETF funds,” Pranav Mer, VP of Research (Commodity & Currency) at BlinkX and JM Financial, stated.
According to traders, sustained buying by jewellers, as well as a solid trend in overseas markets, assisted the gold price surge.In the futures session on the MCX, gold contracts for October delivery achieved a new record high of Rs 997, or 1.33 percent, to Rs 76,000 per 10 gramme on the exchange.
However, silver contracts for December delivery fell Rs 419, or 0.45%, to Rs 91,974 a kilogramme. Globally, Comex gold is trading 0.15% higher at USD 2,681.10 per ounce.
During the day, its prices reached a record high of USD 2,694.89 per ounce in international markets.
Gold prices reached new highs on both the Comex and domestic fronts, extending a recent run of gains amid persistent optimism about US interest rate cuts, with attention shifting to more upcoming cues this week and heightened geopolitical tensions,” said Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd.
According to Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, US consumer confidence unexpectedly declined in September by the highest in three years, heightening concerns about the economy’s outlook.
Following the data release, US dollar fell, along with US Treasury yields, which also pushed gold prices higher, Gandhi said.In the Asian trading hours, silver also quoted higher at USD 32.15 per ounce.Silver prices soared beyond Rs 90,000 in the physical market, with Comex silver reaching USD 32 after a rapid increase.
“The bullish movement comes amid strong expectations for further US interest rate cuts and China unveiling aggressive stimulus measures,” said Jateen Trivedi, VP Research Analyst — Commodity and Currency at LKP Securities.
