Gold prices on Wednesday touched new highs tracking rally in global bullion market. The yellow metal prices hit a fresh high of Rs 37,848 per 10 grams on MCX amid rising tensions between the two economic giants - the US and China, global growth concerns and falling equity markets.
Gold prices on Wednesday touched new highs tracking rally in the global bullion market. The yellow metal prices hit a fresh high of Rs 37,848 per 10 grams on MCX amid rising tensions between the two economic giants – the US and China, global growth concerns and falling equity markets. Globally, the precious metal prices jumped 1 per cent to their highest in more than six years. While the spot gold surged 1.1 per cent at $1,490.57 per ounce as of 0718 GMT, its highest since April 2013, the US gold futures also rose 1.2% to $1,501.50 an ounce.
“A strong recovery in India’s jewellery market pushed demand in Q2 up 12% to 168.8t. A busy wedding season and healthy festival sales boosted demand before the June price rise brought it to a virtual standstill. Indian demand drove global jewellery demand 2% higher y-o-y to 531.7t,” Ajay Kedia, Director at Kedia Commodity told Financial Express Online while further adding that the gold prices in India may cross Rs 38,500 per 10 grams level to reach a level of Rs 40,000 per ten gram soon on rupee weakness. Today the Indian rupee depreciated against the US dollar by 0.2% to 70.98, he further added.
Last week, the US President Donald Trump said he would impose additional tariffs on Chinese goods, in response to which China allowed its currency to depreciate past the important psychological level of 7 per dollar. Meanwhile, White House economic adviser Larry Kudlow said the Trump administration wants to continue trade talks with China and is still planning to host a Chinese delegation for talks in September, according to Reuters.
The Reserve Bank of India in its monetary policy on Wednesday said the gold prices had soared on account of increase in demand for the safe haven. The monetary policy committee or MPC noted that global economic activity has slowed down since its meeting in June in an environment rendered hostile by elevated trade tensions and geopolitical uncertainty. Reflecting subdued demand conditions, crude oil prices have fallen sharply since mid-May. On the other hand, gold prices have risen, propelled by increased safe-haven demand,” the central bank said.