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Gold soars to new high, crosses ₹38,000/10gm

August 09, 2019 05:41 AM


Gold soars to new high, crosses ₹38,000/10gm
Global Prices Edge Down, But Analysts See Upside

New Delhi:

Gold prices on Thursday soared past the Rs 38,000-mark for the first time, rising Rs 550 to hit a fresh high of Rs 38,470 per 10gm here in the capital. In Mumbai, agency reports pegged the price of 10gm of standard gold (99.5 purity) at Rs 37,091, while pure gold (99.9 purity) cost Rs 37,240 on Thursday. In global markets, however, prices softened from the over $1,500 an ounce level — the highest in nearly six years.

Gold prices have risen nearly 16% this year, and by around $100 an ounce this week, as investors turned to the precious metal — seen as a safe haven amid the bruising USChina trade and currency war. Spot gold was trading at $1,497.4 an ounce in New York, while silver was trading at $17.16 an ounce.

In Delhi, silver too crossed the Rs 44,000-mark, rising Rs 630 to hit Rs 44,300 per kg on increased offtake by industrial units and coin makers.

Analysts expect gold prices to remain elevated in the short to medium term. Gnanasekar Thiagrajan, director at Commtrendz Research, expects the rally to continue and sustain for some time. “The US Fed has started cutting rates,” Thiagrajan said when asked whether the rally in the yellow metal was sustainable for long.

The currency war triggered by China has played a part too. “Ever since the devaluation of yuan, gold prices have been going up. China has also been buying in large quantities in the last nearly two years. And they have large gold reserves. It has been a trend. Whenever there is some sharp downward movement in the yuan, gold prices go up. The rally in gold price is 100% sustainable and, in the short to medium term, it will continue. I don’t expect any sharp movement in the prices unless the yuan reaches the level of 7 to a US dollar,” said Haresh Acharya, director India Bullion Jewellers Association

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