Gold prices rise closer to record high, silver rates surge1 min read . Updated: 24 Jul 2019, 05:57 PM IST
- Gold prices rebounded today to inch closer to all-time highs
- Silver rates also surged, tracking firming global trend
New Delhi: Gold prices in India inched closer to record highs amid firming global trend. Gold prices today rose ₹150 to ₹35,870 per 10 gram at the bullion market, Press Trust of India reported, citing All India Sarafa Association. Tracking gold, silver prices also strengthened after they advanced ₹350 to ₹42,300 per kg. In the national capital, gold of 99.9% and 99.5% purity gained ₹150 each to ₹35,870 and ₹35,700 per 10 gram, respectively.
Sovereign gold also advanced by ₹100 to ₹27,500 per eight gram. Silver ready jumped by ₹350 to ₹42,300 per kg and weekly-based delivery was up by ₹511 to ₹41,546 per kg. Silver coins were in good demand and traded higher by ₹1,000 at ₹85,000 for buying and ₹86,000 for selling of 100 pieces, respectively.
In global markets, gold prices edged higher on expectations of monetary policy easing from major central banks to shore up global economy. Escalating tensions in the Middle East also increased the safe-haven appeal of gold. A stronger US dollar however capped the gains. Spot gold prices were up 0.7% at $1,426.62 per ounce.
The European Central Bank (ECB) is expected to signal easier monetary policy when it meets on Thursday. The US Fed is also widely expected to cut its overnight benchmark lending rate. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
If the Fed surprises with a 50 bps cut, gold prices could get a further boost, say analysts. For now, gold may remain rangebound, they say..
Concerns about tepid economic growth have prompted central banks around the world to review their stance on monetary policy. The IMF on Tuesday lowered its forecast for global growth this year and next, warning that more U.S.-China tariffs, auto tariffs or a disorderly Brexit could further slow growth, weaken investment and disrupt supply chains.
Amongst other precious metals, silver gained 0.8% to $16.53. Silver ETFs tracked by Reuters have risen to record levels to 666.2 million ounces.
Back in India, August gold futures on MCX rebounded after were up over ₹35,000. Silver futures rose 0.52% to ₹41,650. (With Agency Inputs)