Gold prices in India hit record high today amid firm global cues. In Delhi, gold prices rose by ₹100 to touch a new high of₹35,970 per 10 gram, according to the All India Sarafa Association. Silver also followed the suit and gained ₹260 to₹41,960 per kg. "Today's (Monday) gold price of ₹35,970 per 10 gram is the highest till date," said Press Trust of India quoted Surendra Jain, vice-president of All India Sarafa Association, as saying. In Delhi, gold of 99.9% and99.5% purity today gained₹100 each to 35,970 and ₹35,800 per 10 gram, respectively.
Sovereign gold also advanced by ₹100 to ₹27,500 per eight gram. Silver ready rose ₹260 to ₹41,960 per kg, while weekly-based delivery climbed ₹391 to ₹41,073 per kg.
On MCX, August gold futures rose 0.40% to ₹35,174 per 10 gram after hitting a record high of ₹35,409 last week. The October gold contracts also moved higher to ₹35,750. Tracking gold, silver prices also hardened with September contracts rising 1.5% to ₹41,317. In global markets, gold prices ticked higher as tensions in the Middle East and weaker financial markets supported the metal. Spot gold was up 0.2% at $1,427.88 per ounce.
Tensions ratcheted up in the Middle East after Iran on Friday seized a British-flagged oil tanker in the Strait of Hormuz on Friday in an apparent retaliation for the British capture of an Iranian tanker two weeks earlier. Gold prices had hit a 6-year high of $1,452.60 in the previous session before giving up some gains.
Meanwhile investors have increased their exposure to gold in the form of ETFs. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.72% to 820.49 tonnes on Friday from Thursday. Hedge funds and money managers raised their bullish stance in COMEX gold in the week to July 16, the US Commodity Futures Trading Commission (CFTC) said in a report on Friday. Among other precious metals, silver rose 1% to $16.37 per ounce.
Gold prices have got a boost on expectations of a monetary policy stimulus from major global central banks, including the US Federal Reserve. The universe of bonds yielding less than nothing hit a record $13 trillion this month, according to a Bloomberg report.
In India, high gold prices have hit the demand for yellow metal. A Reuters report 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 $33 over official domestic prices.
Courtesy - Livemint