Gold prices in India touched a new high of Rs 35,970 per 10 gram after gaining Rs 100 on Monday on strong demand from local jewellers, as per data provided by the All India Sarafa Association. Tracking gold, silver prices also saw surge in demand, climbing more than 8% this week.
"Today's (Monday) gold price of Rs 35,970 per 10 gram is the highest till date," said Surendra Jain, vice-president of All India Sarafa Association.
According to traders, there was a strong demand rise from local jewellers. Timid dollar and bearish trend in equity markets also boosted demand for yellow metal as investors moved towards safe-haven assets like precious metals. Given the uncertainty over international trade, Brexit and global geopolitical tensions, the precious metal's momentum may sustain in the upcoming days.
In Delhi spot market, gold of 99.9% and 99.5% purity gained Rs 280 to Rs 35,950 and Rs 35,780 per 10 gram, respectively. On Saturday, gold had declined by Rs 80 to Rs 35,870 per 10 gram.
India recently raised import duties on gold and other precious metals to 12.5% from 10%.
"The deep discounts in gold prices in the physical market, following a sharp increase in import duty, have increased trading interest in gold contracts on Exchanges with open interest rising significantly," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
On his daily report on the Commodity market, Patel stated that the volatility on gold prices is quite high internationally, further adding that, "Silver prices gained momentum on expectations of a revival in industrial demand on monetary easing from major central banks".
In global markets, spot gold was trading almost flat at USD 1,425.60 an ounce, while silver quoting higher at USD 16.40 per ounce today. Gold prices hit a six-year high on Friday after Powell strengthened expectations of an interest rate cut by the Federal Reserve, on July 30-31's Federal Open Market Committee meeting.
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