Amid rising equities, the bullion market on Monday saw a surge as gold extended gains after hitting a one-month low last week.
Amid rising equities, the bullion market on Monday saw a surge as gold extended gains after hitting a one-month low last week. The yellow metal climbed by Rs 130 to Rs 38,690 per 10 gram in the national capital following the global trend, news agency PTI reported. Similarly, silver also surged Rs 900 to Rs 47,990 per kilogram from its last close of Rs 47,090 per kilogram. The 24 Karat gold metal closed at Rs Rs 38,560 per 10 gram on Friday. The gold is on rise tracking cues from global market and weak rupee, experts said.
“The global uncertainty over US-China trade war, tension in the Middle East and weak rupee is pushing investors towards the bullion counters. The gold is expected to target a level of 38,800 in the domestic market this week,” Ajay Kedia, MD, Kedia Commodities.
The gold prices were trading higher at $1,518 an ounce in New York, while silver was also quoting with gains at $17.87 per ounce in the global market. “Amid global fears, gold is being seen as a safe haven by investors. The target for this week on MCX is 38,300.” Anuj Gupta, Deputy Vice President – Research – Commodities & Forex, Angel Broking told Financial Express Online. The rise in crude price was on account of tension in the Gulf and this led the investors to invest in gold, he added.
The rupee opened marginally lower by 9 paise at 71.03 against the US dollar on Monday, as rising crude oil prices and concerns regarding the US-China trade war kept investors edgy. After soaring over 1,426 points during the day, the 30-share index ended 1,075.41 points or 2.8 per cent higher at 39,090.03. The broader NSE Nifty reclaimed the 11,600 level, zooming 326 points or 2.9 per cent to settle at 11,600.20.