Gold prices reach all-time high, silver rates also witness surges

Prices of gold in India has been recorded high amidst firm global cues. In Delhi, capital of India, gold prices rose by Rs 100 to reach a new high of Rs 35,970 (US $ 500) per 10 grams, as per the All India Sarafa Association. This rise was also followed by silver which gained Rs 260 (US $ 3.61) to Rs 41,960 (US $ 583) per kg. In Delhi, gold of 99.9 per cent and 99.5 per cent purity gained Rs 100 (US$ 1.39) each to Rs 35,970 (US $ 500) and Rs 35,800 (US $ 497) per 10 grams, respectively.

Sovereign gold also enhanced by Rs 100(US $ 1.39) to Rs 27,500 (US $ 382.2) per eight grams. Silver ready rose Rs 260(US $ 3.61) to Rs 41,960 (US $ 583) per kg, whereas weekly-based delivery climbed Rs 391 (US $ 5.4) to Rs 41,073 (US $ 570.91) per kg.

According to MCX, August gold futures rose 0.40 per cent to Rs 35,174 (US $ 488.1) per 10 gram after hitting a record high of Rs 35,409 (US $ 492.1) last week. The October gold contracts also jumped to Rs 35,750(US $ 496.92). Silver prices also gained strength with September contracts rising 1.5 per cent to Rs 41,317 (US $ 574.3). In global markets, gold prices hit higher as problem in the Middle East rose and weaker financial markets supported the metal. Spot gold was up 0.2 per cent at US$ 1,427.88 per ounce.

Investors have strengthened their exposure to gold in the form of ETFs. Holdings of SPDR Gold Trust, which is the world's largest gold-backed exchange-traded fund, rose 0.72 per cent to 820.49 tonnes. 

In India, high gold prices have hit the requirement for yellow metal. A Reuters statement from last week said in India, the world's second-biggest gold consumer, dealers were forced to offer the highest discounts since August 2016, at about US$ 33 over official domestic prices.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.