New Delhi: Gold prices surged Rs 900 to hit a fresh record high of Rs 77,850 per 10 grams in the national capital on Wednesday amid a rally in precious metal rates in the global markets, according to All India Sarafa Association.
The precious metal of 99.9 per cent purity had closed at Rs 76,950 per 10 grams on Tuesday.
Silver soared Rs 3,000 to Rs 93,000 per kg on fresh offtake by industrial units and coin makers. It had ended at Rs 90,000 per kg in the previous close.
Additionally, gold of 99.5 per cent purity also climbed Rs 900 to hit all-time high level of Rs 77,500 per 10 grams. The metal had finished at Rs 76,600 per 10 grams in the previous session.
Gold prices in the international markets is likely to surpass USD 3,200 per ounce in the near future, Surendra Mehta, National Secretary at India Bullion and Jewellers Association (IBJA), said.
“Gold’s bull run continues as prices hit yet another all-time high at Rs 76,000 per 10 gm on futures.
“Prices remain supported by a weaker dollar, expectation of more rate cuts from global central banks, safe haven demand, and inflow of ETF funds,” Pranav Mer, VP – Research (Commodity & Currency) at BlinkX and JM Financial, said.
According to traders, persistent buying by jewellers and a strong trend in the international markets were among the factors that aided the rally in gold prices.
On the other hand, in the futures trade on the MCX, gold contracts for October delivery hit a fresh record high of Rs 997, or 1.33 per cent, to Rs 76,000 per 10 gram on the exchange.
However, silver contracts for December delivery declined Rs 419, or 0.45 per cent, to Rs 91,974 per kg.
Globally, Comex gold is trading 0.15 per cent higher at USD 2,681.10 per ounce.
During the day, its prices reached a record high of USD 2,694.89 per ounce in the overseas markets.
“Gold prices hit record highs on both Comex as well as on domestic front, extending a recent run of gains amid persistent optimism over US interest rate cuts, with focus turning to more upcoming cues this week and heightened geo-political tensions,” Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said.
According to Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, US data showed on Tuesday that US consumer confidence unexpectedly fell in September by the most in three years, raising concerns about the outlook for the broader economy.
Following the data release, US dollar fell, along with US Treasury yields, which also pushed gold prices higher, Gandhi said.
In the Asian trading hours, silver also quoted higher at USD 32.15 per ounce.
“Silver prices surged past Rs 90,000 in the physical market, with Comex silver surpassing USD 32, following a sharp rally.
“The bullish movement comes amid strong expectations for further US interest rate cuts and China unveiling aggressive stimulus measures,” Jateen Trivedi, VP Research Analyst — Commodity and Currency, LKP Securities, said.
