New Delhi: Gold prices today surged in domestic markets, tracking higher overseas prices. Extending its gains to the third day, gold prices crossed the ₹34,000 mark, after they rose by ₹320 to ₹34,070 per 10 gram, Press Trust of India reported, citing All India Sarafa Association. Tracking gold, silver rates today rose by ₹330 to ₹41,330 per kg on increased offtake by industrial units and coin makers, the report said. In the past two days, gold prices had risen by ₹450.
In Delhi, prices of gold of 99.9% and 99.5% purities climbed ₹320 each to ₹34,070 and ₹33,920 per 10 gram, respectively. Similarly, sovereign gold advanced by ₹200 to ₹25,900 per piece of eight gram. Silver ready rose by ₹330 to ₹41,330 per kg and weekly-based delivery by ₹361 to ₹40,434 per kg.
Silver coins, too, were in good demand and traded higher by ₹1,000 at ₹79,000 for buying and ₹80,000 for selling of 100 pieces, respectively.
In global markets, gold prices rose to more than 8-month high today, supported by muted dollar. Investors awaited Federal Reserve's policy decision, due later in the day, and progress on US-China trade talks. Spot gold rates were up 0.1% at $1,312.51 per ounce, after touching $1,315.93, its highest since May 14, 2018 earlier in the session.
Markets watchers expect Fed officials to reinforce their recent dovish stance given a stalemate on global trade, signs of a slowdown in the US economy, and waning business and consumer confidence. The Fed raised interest rates four times last year.
Gold tends to gain on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion and weighs on the dollar, making bullion cheaper for holders of other currencies.
Gold prices also got a boost as investors remained concerned that charges against China's Huawei Technologies over US sanctions against Iran could complicate US-China trade talks.
Jitters over global growth and a possible pause to US monetary tightening are expected to set gold prices up for gains in 2019, a Reuters poll showed on Tuesday. The survey of 36 analysts and traders returned a median forecast for gold to average $1,305 an ounce in 2019, up around 3% from last year's average and a touch higher than forecast in a similar poll three months ago. (With Agency Inputs)