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Last Updated : Jul 08, 2020 11:11 PM IST | Source: Moneycontrol.com

Gold at record high of Rs 49,122 per 10 gram, silver jumps Rs 1,270 per kg

On the domestic front, prices could hover around Rs 48,550-49,920 per 10 gm, Damani said

Gold prices gained Rs 678 to Rs 49,122 per 10 gram, a record high in the Mumbai bullion market on rupee depreciation against the dollar and strong global cues. The precious metal prices jumped to the highest level since September 2011 on increasing coronavirus cases globally and hopes of more stimulus package actions to combat the economic blow.

Gold prices surpassed its 2011 high, touching $1,815/oz on July 8 as investors moved some portion of their investment into the yellow metal as a hedge against market uncertainty.

The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,842, Rs 44,996 and Rs 49,122 plus 3 percent GST, respectively.

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Three Federal Reserve officials expressed concern that the surge in coronavirus infections threatens to pinch consumer spending and job gains just as some stimulus programmes are set to expire. One Fed policymaker pledged more support ahead from the US central bank.

"These strong words supported gold's rally," Navneet Damani, Vice President, Motilal Oswal, said.

Indicative of sentiment, SPDR holdings rose 0.66 percent to 1,199.36 tonne on July 7.

The broader trend on the COMEX could be in the range of $1770-1825 and on domestic front, prices could hover around Rs 48,550-49,920 per 10 gm, Damani said.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities, expects gold to trade higher provided $1,800 levels holds on a few daily closings.

The gold-to-silver ratio currently stands at 97.96 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices rose Rs 1,270 to Rs 50,140 per kg from its closing on July 7.

In the futures market, gold touched an intraday high of Rs 49,045 and an intraday low of Rs 48,642 on the Multi-Commodity Exchange (MCX). For the August series, the yellow metal touched a low of Rs 39,200 and a high of Rs 49,045.

Gold futures for August delivery jumped Rs 171, or 0.35 percent, at Rs 48,971 per 10 gram in evening trade on a business turnover of 11,582 lots. The same for October delivery was up Rs 185, or 0.38 percent, at Rs 49,120 on a business turnover of 8,671 lots.

The value of the August and October contracts traded so far is Rs 3,512.77 crore and Rs 347.04 crore, respectively.

Similarly, Gold Mini contract for August gained Rs 154, or 0.32 percent at Rs 48,950 on a business turnover of 13,037 lots.

At 12:17 (GMT), spot gold was up $7.46 at $1,802.62 an ounce in London trading.

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First Published on Jul 8, 2020 06:36 pm
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