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Last Updated : Aug 05, 2019 07:20 PM IST | Source: PTI

Gold surges to record high, nears Rs 37,000, silver up Rs 1,000

Tracking the movement of gold, silver also soared Rs 1,000 to 43,100 per kg on the back of robust demand from industrial units and coin makers.

Gold prices on Monday surged Rs 800 to hit an all-time high of Rs 36,970 per 10 gram at the bullion market here amid strong trend overseas as investors preferred the yellow metal due to the escalation of trade tensions between the United States and China. Tracking the movement of gold, silver also soared Rs 1,000 to 43,100 per kg on the back of robust demand from industrial units and coin makers.

Experts said gold reaching its highest level since May 2013 due to the US-China tensions and increased demand by local jewellers were the factors that propelled the yellow metal to record high levels in the domestic market.

The US last week announced that it would impose a 10 percent tariff on Chinese imports worth USD 300 billion starting September 1 and said it could raise duties further if China's President Xi Jinping failed to move more quickly towards a trade deal.

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Besides, a weaker rupee also contributed to the rise in the yellow prices as the domestic currency fell by 99 paise to Rs 70.59 vis-a-vis dollar, making imports costlier. The rupee closed at Rs 69.60 on Friday.

"Gold price of Rs 36,970 per 10 gram is the highest in the domestic market till date," said Surendra Jain, vice-president of All India Sarafa Association.

Globally, gold was trading up 1.13 percent at $ 1,457.30 an ounce, while silver traded 1.51 percent higher at $ 16.53 an ounce.

"Spot gold jumped to $ 1,459.46 an ounce in the international market, its highest level since May 2013. Weak global economic outlook amid escalating trade war tensions, feeble US dollar and downbeat Asian equities lifted the metal's safe-haven appeal for investors," Hareesh V, head (commodity research), Geojit Financial Services.

In the national capital, gold of 99.9 percent and 99.5 percent purity surged Rs 800 to Rs 36,970 and Rs 36,800 per 10 gram, respectively.

Gold prices had risen by Rs 540 to Rs 36,170 per 10 gm on Saturday.

Sovereign gold also increased by Rs 100 to Rs 27,600 per eight grams on Monday.

Silver ready rose Rs 1,000 to 43,100 per kg, while weekly-based delivery jumped Rs 1,039 to Rs 42,403 per kg.

The price of silver coins held flat at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.

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First Published on Aug 5, 2019 07:00 pm
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