Gold Rate In India: Domestic gold and silver futures surged to new all-time highs on Thursday, extending gains to a second straight session, tracking global rates amid US-China tensions. Multi Commodity Exchange (MCX) gold futures - due for delivery on August 5 - rose by Rs 629 or 1.26 per cent to a record high of Rs 50,707, and silver futures - due for a September 4 delivery - climbed to Rs 62,400. Sky-high prices have already dampened retail demand for gold in India, the world's second largest consumer of the precious metal. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
At 2:53 pm, the MCX gold futures traded 0.88 per cent higher at Rs 50,520, while the silver contract quoted at Rs 61,810, up 1.14 per cent from its previous close. (Track Gold Rate Here)
Precious metal prices have broken a series of records over the past few weeks amid rising COVID-19 cases in the country and the world. Typically, any sign of uncertainty in the capital markets boosts the appeal of gold as a safe-haven bet, as investors rush away from riskier asset classes.
In the international market, gold steadied near a nine-year peak as an escalation in US-China tensions bolstered its safe-haven appeal, with investors also looking for a hedge against possible inflation as more stimulus is rolled out to support pandemic-hit economies. Spot gold was last seen trading 0.1 per cent higher at $1,874.21 per ounce, having earlier declined to $1,876.16 - their highest since September 2011 - on mild profit-booking.
According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the opening rate of gold jewellery stood at Rs 50,552 per 10 grams and silver at Rs 60,586 per kilogram on Thursday - both excluding Goods and Services Tax.
#Gold and #Silver Opening #Rates for 23/07/2020#IBJA pic.twitter.com/Ki6gq8qg8k
Gold jewellery prices vary in different parts of the country due to factors such as state taxes and making charges. India's gold imports dropped 96 per cent to 13 tonnes in the June quarter after shipments virtually ground to a halt in April and May.
Meanwhile, domestic stock markets ticked higher on Thursday as investors were encouraged by overnight gains on Wall Street, even as domestic coronavirus cases crossed 1.2 million.
The Sensex index rose as much as 0.79 per cent to 38,169.48 during the session, and the broader Nifty 50 benchmark climbed to as high as 11,226.55, up 0.84 per cent from its previous close, as the markets gave up early gains after a positive start.
In March, commodity exchanges cut down trading hours, in a shift from the practice of allowing trading till midnight, in the wake of coronavirus pandemic. The trading now begins at 9 am and ends at 5 pm, instead of 11:50 pm earlier.
What Analysts Say
Ravindra Rao, VP-head commodity research, Kotak Securities:
"Gold continues to hit new highs supported by weaker US dollar, strong investor buying, increased geopolitical tensions, rising virus cases and hopes of additional stimulus measures. Gold may trade higher unless we see a significant recovery in US dollar.”
Navneet Damani, VP-commodities research, Motilal Oswal Financial Services:
"Over the last few months we have been seen a sustain run-up in gold giving over 25 per cent returns for this year and taking the total gains for the last two years to over 45 per cent. However, given the current macro backdrop, we expect the momentum to continue and gold could deliver a handsome 30 per cent returns targeting Rs 65,000/10 grams over the next 18-24 months."
"What gives us the confidence is the is the rapidly changing macros backdrop leading to lot of uncertainty, lower interest rates, negative falling bond yields, sustain liquidity push from many central banks and expanded fiscal balance sheets to minimise the impact of COVID-19-related slowdown."
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
