The price of 10 gram 22-carat gold in Mumbai was Rs 44,780, and that of 24-carat 10 gram was Rs 48,886. The rates exclude GST.
Gold prices climbed to a fresh record high of Rs 48,886 per 10 gram in the Mumbai bullion market on rupee depreciation, and as fears of a second wave of coronavirus infection boosted demand for the safe-haven metal.
The rate of 10 gram 22-carat gold in Mumbai was Rs 44,780 plus 3 percent GST, while 24-carat 10 gram was Rs 48,886 plus GST. The 18-carat gold quoted at Rs 36,665 plus GST in the retail market.
The top US pandemics expert Anthony Fauci on Monday said the US coronavirus cases could grow to 100,000 daily without proper social-distancing and other safety measures.
The bullion metal is also getting support from uncertainty on the Hong Kong issue, rising COVID cases and increasing distress in the market.
Chirag Mehta, Senior Fund Manager, Alternative Investments, Quantum Mutual Fund said, gold could be an effective portfolio diversifier in the case of another stock market correction and renewed risk aversion. Protracted macroeconomic uncertainties and systemic vulnerabilities are going to ensure that gold will remain a preferred monetary asset for years to come.
Make a strategic allocation to gold because it's the counterweight to paper money which is continuing to lose credibility as a store of value, said Mehta.
Navneet Damani, Vice President, Motilal Oswal said, "Gold surged to its highest in nearly eight years on Tuesday as mounting fears of a resurgence of new coronavirus cases kept safe-haven demand for gold alive, setting the precious metal on the path for its biggest quarterly gain since March 2016."
"Positive US consumer confidence number also could not dampen gold's rally. Uncertainties around regarding the Hong Kong issue, a second wave of COVID-19 is increasing distress in the market hence supporting precious metal prices," he said.
US Treasury Secretary Steven Mnuchin and Fed Governor Powell pledged to do more for the US economy as it battles the enormous fallout from the virus outbreak. Today market participants will focus on PMI numbers from major economies globally and private payroll numbers from the US which will give a hint on the situation of the jobs market in the country.
The broader trend on COMEX could be in the range of $1775-1805 and on domestic front prices could hover in the range of Rs 48,550-49,200.
The gold/silver ratio that refers to the amount of silver required to buy an ounce of gold stood at 98.45 to 1.
Silver prices rose Rs 1,055 to Rs 49,655 per kg from its closing on June 30.
In the futures market, gold rate touched an intraday high of Rs 48,982 and an intraday low of Rs 48,612 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 48,982.
Gold futures for August delivery eased Rs 82, or 0.17 percent, at Rs 48,680 per 10 gram in evening trade on a business turnover of 13,560 lots. The same for October delivery was down Rs 61, or 0.12 percent, at Rs 48,831 on a business turnover of 6,484 lots.
The value of the August and October contracts traded so far was Rs 3,603.98 crore and Rs 167.88 crore, respectively.
Similarly, Gold Mini contract for August slipped Rs 65, or 0.13 percent at Rs 48,683 on a business turnover of 11,299 lots.
Axis Securities advised its clients to buy August gold at Rs 48,800 per 10 gram with stop loss at Rs 48,650 and target of Rs 49,100.
At 12:24 (GMT), spot gold was marginally down $0.05 at $1,779.63 an ounce in London trading.For all commodities related news, click here