Gold nears Rs 40,000; silver soars Rs 2,110

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New Delhi | Published: August 28, 2019 5:24:30 PM

Resuming its record-setting streak, gold price jumped Rs 300 on Wednesday to a fresh all-time high of Rs 39,970 per 10 gm here, according to the All India Sarafa Association, on higher demand from local jewellers and the yellow metal's appeal as safe-haven amid global economic concerns.

Traders and analysts said higher uptake by local jewellers ahead of festive season and investors preferring the yellow metal as a safe-haven asset helped the yellow metal touch its new all-time high level

Resuming its record-setting streak, gold price jumped Rs 300 on Wednesday to a fresh all-time high of Rs 39,970 per 10 gm here, according to the All India Sarafa Association, on higher demand from local jewellers and the yellow metal’s appeal as safe-haven amid global economic concerns. Silver skyrocketed Rs 2,110 to Rs 48,850 per kg, helped by positive trend overseas and strong demand from industrial units and coin makers.

In the US market, the white metal was trading 0.61 per cent up at USD 18.38 an ounce. Globally, the yellow metal was almost flat at USD 1,543 an ounce in New York. Traders and analysts said higher uptake by local jewellers ahead of festive season and investors preferring the yellow metal as a safe-haven asset helped the yellow metal touch its new all-time high level.

“Spot gold held steady near a six-year high in the international market supported by increased safe haven demand,” said Hareesh V, head (commodity research), Geojit Financial Services. He added that recession fears accompanied by weak global growth outlook and trade talk uncertainties between the US and China have been boosting the yellow metal’s safe haven demand.

Moreover, a weaker rupee vis-a-vis dollar is also supporting the rally, he said. Hopes of further interest rate cut by the US Federal Reserve amid disappointing economic releases also prompted investors to focus on safer assets like gold, Hareesh added. In the US, the yield curve inversion on Tuesday deepened to levels not seen since 2007, rekindling fears of a looming recession and making the yellow metal attractive as a safe-haven asset.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity jumped Rs 300 each at Rs 39,970 and Rs 39,800 per 10 gram, respectively. Sovereign gold soared Rs 300 to Rs 29,800 per eight grams. Silver ready skyrocketed Rs 2,110 to Rs 48,850 per kg, while weekly-based delivery jumped 1,289 to to Rs 46,416 per kg. Silver coins were in good demand and traded higher by Rs 2,000 at Rs 98,000 for buying and Rs 99,000 for selling of 100 coins.

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