Gold prices surge ₹400 per 10 gram in a day, silver rates jump ₹9001 min read . Updated: 25 Dec 2019, 05:24 PM IST
- Gold prices are up over 20% so far this year
- Silver rates are have also risen sharply this week
Gold prices have surged in India this week, tracking a jump in global rates and weakness in the rupee. On MCX, February gold futures rose over 1% or ₹405 to ₹38,662 per 10 gram on Tuesday, extending their previous day's gain. Tracking gold, silver prices also firmed up. Silver futures rates jumped 2% or ₹909 to ₹46,570 per kg. MCX is closed today for a holiday. In global markets, gold prices surged past key level of $1,500 an ounce. Gold advanced as mixed US data Monday kept hopes of interest-rate cuts alive.
In India, a weak rupee also kept gold supported. Disappointing US economic data for capital goods supported gold prices, said Abhishek Bansal, chairman of ABans Group of Companies. New orders for key US-made capital goods remained muted in November and shipments fell.
Meanwhile, US President Donald Trump said he and Chinese President Xi Jinping will sign the initial phase of the pending trade pact in a ceremony. Back .
The rupee on Tuesday fell 9 paise to close at 71.27 against the US dollar amid heavy selling in domestic equities and steady rise in crude oil prices.
"Gold prices seem to have topped out around $1,500/ounce given that market participants have pared back their expectations on aggressive monetary easing in the US. Gradual recovery in global economic growth will also dilute the safe-haven demand for the yellow metal," Yes Securities said in a Tuesday note.
"Moreover, physical offtake for gold also remains weak, with subdued jewelry consumption reported in India and China," the brokerage added.
Gold prices are up over 20% in India so far this year, buoyed by a rally in global rally, depreciation in the rupee and an import duty hike. Domestic prices include 12.5% import tax and 3% GST.
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