Gold prices hit record highs for fourth day, silver rates remain flat
1 min read . Updated: 23 Aug 2019, 05:15 PM IST
Premium- A weakening of the rupee supported gold prices in India
- In India, gold prices are up around 20% so far this year
New Delhi: Gold continued its record-setting trend today by inching closer to ₹ ₹39,000 per 10 grams in domestic markets. Hitting a fresh hit for the fourth day in a row, gold rose ₹25 to ₹38,995 per 10 gram, Press Trust of India reported, citing All India Sarafa Association. Silver held steady at the previous level of ₹45,100 per kg. In the national capital, gold of 99.9% purity advanced ₹25 to ₹38,995 per 10 gram. In futures markets, gold prices struggled today, following a similar global trend.
On MCX, October gold futures were down ₹145 to ₹38,020. Gold futures had hit a new high of ₹38,666 last week. Silver prices also showed some weakness as September futures were down ₹134 to ₹43,762 on MCX. A similar trend was seen in global markets, with gold holding around the key level of $1,500 an ounce, amid uncertainties around monetary policy, trade and geopolitical tensions.
Meanwhile, gold-backed ETFs continued to see a surge in holdings as recession fears increased the safe-haven appeal of the yellow metal. According to a recent Bloomberg report, total known ETF holdings expanded to 2,424.9 tons as on Wednesday, about 1,000 tons higher since holdings bottomed in early 2016.
Gold investors are keenly waiting on a speech by US Federal Reserve Chairman Jerome Powell later in the day at a gathering of central bankers in Jackson Hole. They will look for clues on future policy easing, after the Fed last month cut rates for the first time since the financial crisis. Lower interest rates increase the appeal of non-interest yielding asset classes like gold.
Gold, analysts say, may continue to trade in a broad range unless there is more clarity on US-China trade issues and monetary policies of major central banks.
Financial markets remained nervy as in the US bond market, the closely watched two-year, 10-year Treasury yield curve briefly moved back into inversion overnight amid worries of a sharp global downturn. An inversions in the US yield curve has presaged several past US recessions.
Earlier this week veteran investor Mark Mobius said gold’s long-term prospect is "up, up and up" as leading central banks loosen monetary policy. Another famed investor Ray Dalio gave an endorsement to buying gold. They join analysts at Goldman Sachs and UBS Group who also remain positive on gold.
