Gold traded at a 6-year high of Rs 32,625 per 10 gram on Thursday amid a global selloff in equities, increased demand among local jewellers in the ongoing festive season and weakening rupee.
Gold traded at a 6-year high of Rs 32,625 per 10 gram on Thursday amid global selloff in equities, increased demand among local jewellers in the ongoing festive season and weakening rupee. However, silver prices plunged to Rs 39,600 per kg, a fall of Rs 130, due to weak demand from industrial units.
In Delhi, the gold of 99.99 and 99.5 percent purity surged by Rs 125 each to Rs 32,625 and Rs 32,475 per 10 gram, respectively. Since November 29, 2012, this is the highest level for the yellow metal, when it had ended at Rs 32,940 per ten gram.
The yellow metal traded at Rs 32,300 per 10 gm yesterday, having surged 4.7 percent or Rs 1,450 since the start of September.
The gold was trading at $1,234.20 an ounce in Singapore Thursday.
“Risk aversion towards asset classes such as equities is fuelling interest in gold in India and world. The rupee depreciation, widening fiscal deficit, rising crude oil prices are the other concerning factors. We see more upside potential for gold prices. It may reach $1,400 an ounce globally. In India, we expect it to hover around 3700-level,” Aasif Iqbal of Escorts Securities told FE Online.
“The major reason that can be attributed to the rise in gold prices is the risk-off from the global equities. Usually, a tactical shift to asset allocation is seen whenever a global risk-off in equity occurs and when interest rate change which induces sharp move in US Dollar prices,” said Gemstone Equity Research & Advisory Services’ Consultant Technical Analyst Milan Vaishnav, CMT, MSTA to FE Online
He also said, “………..we might see some rangebound consolidation happening in Gold. But going ahead, some 3-5% up move till 1275 cannot be ruled out with 1205 acting as its base. Any price action below 1205 will be negative for this formation.”
Meanwhile, Sensex opened flat on Friday morning, and soon plunged by about 180 points led by sell-offs across financial stock. The 30-share Sensex opened above 33,750 level, while the broader Nifty 50 plunged below the psychological 10,100-mark in the opening trade.