Gold prices surge ₹930 in a day, near ₹36,000 per 10 gram1 min read . Updated: 11 Jul 2019, 06:23 PM IST
- Gold rates in India mirrored a higher global prices
- Expectations of a rate cut from US Federal Reserve have boosted gold prices
NEW DELHI : New Delhi: Gold prices today surged closer to ₹36,000 in Indian markets, tracking higher global rates. Bullion rates rose ₹930 to ₹35,800 per 10 gram in the national capital, according to According to the All India Sarafa Association. Gold of 99.9% and 99.5% purity surged ₹930 each to ₹35,800 per 10 gram and ₹35,630 per 10 gram. l Silver also followed the suit and rose by ₹300 to ₹39,200 per kg due to more offtake by industrial units and coin makers.
On Multi Commodity Exchange of India (MCX), gold futures for August delivery surged to a record high, rising 0.9% to ₹35,145 per 10 gram. In global markets, gold prices rose for a third day after US Federal reiterated its dovishness, notwithstanding the strong June job numbers.
Spot gold prices in Singapore today rose to as much as 0.6% to $1,427.23 an ounce, trading at a near six-year high level. Gold hit $1,439.21 on June 25, the highest level since 2013.
In his testimony to Congress, US Fed chief Jerome Powell on Wednesday pointed to "broad" global weakness that was clouding the US economic outlook amid uncertainty about the fallout from the Trump administration's trade conflict with China and other nations, boosting the case of a boosting the case for an interest rate cut later this month. The minutes from the Fed's previous policy meeting also showed many policymakers thought more stimulus would be needed soon. Lower rates boost the appeal of non-interest-bearing assets like gold.
In the wake of Powell's comments, the US dollar sagged, with the dollar index coming off from a three-week peak.
Indicative of the bullish sentiment on gold, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.8%on Wednesday.
Elsewhere, silver gained 0.3% in global markets to $15.28 per ounce.
Gold prices have rallied this year with geopolitical and trade tensions also spurring demand. Buying from global central banks have also supported the bullion. The Chinese central bank increased its gold reserves for a seventh straight month in June, data showed. China is the world’s biggest consumer of the yellow metal. (With Agency Inputs)