New Delhi: Gold prices today surged above the 32,600 mark amid higher domestic demand and firm global rates. Gold rates today rose by Rs 170 to Rs 32,620 per 10 gram at the bullion market. Tracking gold, silver rates also surged Rs 600 to Rs 39,250 per kg on fresh buying by industrial units and coin makers. In Delhi, prices of gold of 99.9% and 99.5% purities rose by Rs 170 each to Rs 32,620 and Rs 32,470 per 10 gram, respectively, Press Trust of India reported. Sovereign gold also went up by Rs 100 to Rs 25,200 per piece of eight gram. Gold prices had weakened by Rs 50 to Rs 32,450 per 10 gm on Thursday.
Silver ready today surged Rs 600 to Rs 39,250 per kg and weekly-based delivery soared Rs 1,448 to Rs 38,651 per kg, said the report. Silver coins also moved up by Rs 1,000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.
In global markets, prices of gold hit over six-month high today, stoked by safe-haven demand. Silver rates also hit a 5-month high. Concerns about slowing global economic growth and a partial government shutdown in the US boosted gold prices. Spot gold rose by 0.5% to $1,281.08 per ounce. Gold is often used by investors as a hedge against political and financial uncertainty.
The recent volatility in global stocks has benefited gold, said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.
Many analysts remain bullish on gold for the next year. “We are very optimistic on gold,” said Benjamin Lu, an analyst at Phillip Futures Ltd. “There’s still a lot of uncertainty and gloom toward 2019.” Macro concerns, the U.K’s Brexit process, and high levels of borrowing are among risks that will aid bullion in the first quarter, according to Lu, who said that gold could top $1,300 an ounce should the $1,281 level be breached.
Meanwhile, the Indian government is working on an integrated gold policy to promote growth of the yellow metal industry and exports of jewellery. The domestic industry has demanded a cut in import duty on gold to 4% from the current 10%.
Source: livemint.com