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Home / Markets / Commodities /  Gold prices surge today to near record high, silver rates jump

New Delhi: Gold prices in India today surged closer record highs after they gained 475 to 38,420 per 10 gram, tracking firm global prices. Earlier this week, gold prices had surged to record high of 38,470. Tracking gold, silver rates also jumped 378 to 44,688 per kg. In the national capital, gold of 99.9% and 99.5% purity surged 475 each to 38,420 and 38,250 per 10 gram, respectively, Press Trust of India reported, citing All India Sarafa Association. Earlier this week, silver prices had jumped to a record high of 45,000 per kilogram.

In futures markets gold however saw some profit-taking. On MCX, October gold futures were down 0.61% to 37,930. Silver contracts on MCX fell 0.50% to 43,864.

The collapse of bond yields across the globe has helped increase the appeal of non-interest paying gold. Silver prices have also rallied in tandem with gold.

In global markets, gold prices held firm today at $1,524.90, just off a six-year peak. According to a recent Bloomberg report, bonds worth $15 trillion are currently trading with negative yields. This means bond holders are paying the issuers to hold their money for them. Yields on US 30-year paper slipped an all-time low of 1.916%.

In global markets, the gold prices have been supported near six-year highs by fears of a recession as investors fretted over the US-China trade war, collapse of bond yields, Hong Kong unrest and the recent slide in emerging-market assets. Prices of gold, which is considered a safe store of value during times of political and economic uncertainty, has gained more than $100 per ounce since the beginning of the month, extending their gains to around 18% so far this year.

However, high gold prices have hit demand in India, the second biggest consumer. According to the latest data, gold imports into India slumped 42% to $1.71 billion in July. Jewellers have reported higher supply of scrap gold as consumers sell their old jewellery, prompted by higher prices.

A slide in the rupee has also helped gold prices in India. The rupee has dropped to 71.35 levels against the US dollar, increasing the landed cost of gold in India. Besides global rates, gold jewellery prices in India track rupee-dollar exchange rates and import duty (currently 12.5%) and GST. (With Agency Inputs)

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