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Business News/ Markets / Stock Markets/  Gold prices today surge, hit new highs again, silver rises further
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Gold prices today surge, hit new highs again, silver rises further

Gold prices in India have rallied 28% so far this year
  • Silver saw some profit-taking after a strong rally in the previous session
  • Gold rate today: Prices edged higher to ₹50328 per 10 gramPremium
    Gold rate today: Prices edged higher to 50328 per 10 gram

    Gold prices edged higher today to hit new highs after crossing the key psychological level of 50,000 per 10 gram in the previous session. On MCX, gold prices edged up 1% to a new high of 50,707 per 10 gram. Silver rates also extended gain after a strong rally in the previous session. On MCX, silver futures rose 0.47% to 61,430 per kg. Silver futures on MCX had jumped as much as 8% in the previous session, hitting 62,200 per kg, the highest in over seven years.

    So far this year, gold prices in India have rallied 28% so far this year. But the price rally has dampened physical retail demand for gold in India, the world's second largest consumer of the precious metal.

    Due to weak demand, dealers were offering a discount of up to $5 an ounce over official domestic prices on Wednesday, Reuters reported. Domestic prices in India include a 12.5% import tax and 3% GST.

    Weak demand had pushed down India's gold imports which plunged 96% year-on-year in the June quarter.

    "Surging pandemic cases and a sharp decline in US dollar continues to lift the bullish outlook of gold. Hopes of the fresh economic stimulus and simmering tensions between US and China also provided lower level support to the commodity. At the same time, weak physical demand and a strong rupee may limit major gains in domestic prices," said Hareesh V, Head Commodity Research at Geojit Financial Services.

    In global markets, spot gold fell 0.3% to $1,865.84 per ounce remained near nine-year highs. Apart from expectations of more stimulus and concerns over surging coronavirus cases, the rally in gold has also been helped by a weak dollar, which remained in the doldrums near more than four-month lows against a basket of six other currencies.

    Gold has also gained as unprecedented stimulus has driven real rates significantly below zero making the non-yielding bullion more attractive as a hedge against inflation and currency debasement. (With Agency Inputs)

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    Published: 23 Jul 2020, 09:11 AM IST
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