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HomeUncategorizedGold prices today remain near record high, silver rates firm

Gold prices today remain near record high, silver rates firm

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Gold prices today remain near record high, silver rates firm

Gold prices in India remained near elevated levels, tracking higher global rates. On MCX, October gold futures were 0.13% higher at 38,212 per 10 grams, not far from its recent all-time highs of 38,666. Similarly, September silver futures on MCX remained firm at around 44,100 levels. Indian markets were closed on Thursday. Earlier this week, silver prices had jumped to a record high of 45,000 per kilogram in spot markets of Delhi. 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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