Gold prices in India jumped 1% on Monday to hit another record high as the rupee fell to the lowest level in 2019 amid an escalating trade war between US and China.
Tracking global trend, gold prices leapt higher in early trading session and touched a new high of a little over Rs 40,000 per 10 gm.
After the sharp escalation in the US-China trade war, gold and silver prices pushed to a new six-year high as investors rushed for safe-haven assets. However, the precious metal pared early gains on eased tensions between the US-China trade war after US-China agreed to restart trade talks.
Gold had ended on a strong note on Friday at Rs 38,810 per 10 gram after rising 1.7%, hitting a new high lifetime high.
The depreciating Indian rupee also helped the rise in prices. The Indian currency along with other Asian currencies, came under pressure in today's trade due to strong dollar demand from banks. Later in afternoon trade, rupee traded at 71.97 against the dollar, off from its day's low of 72.25.
Tracking gold, local silver futures were 1% higher at Rs 45,058 per kg, after rising to Rs 45,148 earlier in the day, the highest since 3 October 2016. Silver September futures on MCX hit a new life-time high of Rs 45,342 per kg.
Edited by Rupa Burman RoyRupee vs Dollar: Indian currency hits fresh low of 72.25 in 2019 amid US-China trade war