(HT)
Gold prices inched closer to the psychological mark of ₹1 lakh per 10 grams as the bullion rates surged ₹1,650 in the national capital on Monday on weak dollar and uncertainties over the US-China trade war driving demand.
According to the All India Sarafa Association, the yellow metal of 99.9% purity reached ₹99,800 per 10 grams on Monday. Its value had declined ₹20 to close at ₹98,150 per 10 grams on Friday.
Gold of 99.5% purity bounced ₹1,600 to hit a fresh peak of ₹99,300 per 10 grams in the local markets. It had fallen marginally to settle at ₹97,700 per 10 grams in the previous market close.
So far this year, the yellow metal prices have risen ₹20,850, or 26.41%, per 10 grams since December 31, last year.
Silver prices also appreciated ₹500 to ₹98,500 per kg. The white metal had traded flat at ₹98,000 per kg on Friday.
“This year, gold and silver prices have experienced significant movements due to ongoing trade tensions, rate cut expectations, geopolitical uncertainties and weakening dollar. So far, gold has soared over 25%, including a 6% gain since April 2 tariff announcement by the US administration,” Satish Dondapati, Fund Manager at Kotak Mahindra AMC, said.
On the Multi Commodity Exchange, gold futures for June delivery jumped ₹1,621, or 1.7%, to touch a fresh high of ₹96,875 per 10 grams.
In the international markets, spot gold rose to hit a fresh peak of $3,397.18 per ounce. Later, it pared some gains to trade at $3,393.49 per ounce.
Globally, gold futures breached the psychological $3,400-mark for the first time ever, rising $80 per ounce, or 2.4%.
“Gold prices continued their positive momentum and have risen briefly above $3,400 per ounce, as trade tariff related uncertainty, weakness in the US dollar and rising Treasury yields continue to keep the bullion supported.
“There has been increased buying activity among ETF investors, while upcoming festive demand in India is seen fulling additional support,” Pranav Mer, vice president, EBG of Commodity & Currency Research at JM Financial Services, said.
Kaynat Chainwala, AVP of Commodity Research, Kotak Securities said gold prices continued its rally as the US dollar fell to a new three-year low and safe-haven buying intensified following US President Donald Trump’s threat to fire Federal Reserve Chair Jerome Powell.
Spot silver in the Asian market hours rose nearly 1% to $32.85 per ounce.
