Gold prices surge to near record high of Rs 48,554 per 10 gram, silver jumps

Gold prices climbed Rs 320 to Rs 48,554 per 10 gram in the Mumbai bullion market on weakness in the dollar and firm global cues. The precious metal edged higher as a surge in coronavirus cases worldwide deepened worries of a global economic recovery, boosting safe haven demand.

The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,416, Rs 44,475 and Rs 48,554 plus 3 percent GST.

The gold-to-silver ratio currently stands at 99.97 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices jumped Rs 280 to Rs 48,565 per kg from its closing on June 26.

In the futures market, gold touched an intraday high of Rs 48,462 and an intraday low of Rs 48,217 on the Multi-Commodity Exchange (MCX). In the August series, the yellow metal touched a low of Rs 39,200 and a high of Rs 48,589.

Gold futures for August delivery was up Rs 5, or 0.01 percent, at Rs 48,310 per 10 gram in evening trade on a business turnover of 13,896 lots. The same for October delivery was marginally down at Rs 48,450 on a business turnover of 6,010 lots.

The value of the August and October contracts traded so far is Rs 2,438.64 crore and Rs 53.82 crore, respectively.

Similarly, Gold Mini contract for July eased Rs 25, or 0.05 percent, to Rs 48,338 on a business turnover of 2,471 lots.

Navneet Damani, Vice President, Motilal Oswal, said the broader trend on COMEX could be in the range of $1,750-1,790 and on the domestic front, prices could hover in the range of Rs 48,110-48,790 per 10 gram.

Ravindra Rao, VP- Head Commodity Research, Kotak Securities, said “COMEX gold trades marginally higher near $1785/oz. Choppiness in equity markets has kept gold below its all-important resistance of $1,792/oz. The US Dollar Index trades marginally lower near 97.16, after three days of gains, as market players counter safe haven buying against concerns over the health of the US economy."

At 12:18 (GMT), spot gold was marginally up $0.41 at $1,771.88 an ounce in London trading.

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