The gold rate touched an intraday high of Rs 34,893 and an intraday low of Rs 34,490 on MCX.
Gold prices were up by Rs 200 at Rs 34,400 per 10 grams,a lifetime high in rupee terms, in Mumbai's retail market during the evening's trade on June 25.
The safe haven demand for Gold increased over a firm overseas trend and the announcement of fresh sanctions on Iran by US President Donald Trump.
Kumar Jain, Vice President Mumbai Jewellers Association, told Moneycontrol that gold prices may moderate in the short term as there has been a slowdown in retail purchases and US-Iran tensions may come down. But he advises investors use any correction to buy as he expects the metal to reach Rs 40,000 by Diwali.
The gold rate touched an intraday high of Rs 34,893 and an intraday low of Rs 34,490 on MCX. For the August series, the precious metal touched a low of Rs 31,390 and a high of Rs 34,893.
Gold futures for delivery in August gained Rs 302, or 0.88 percent on the MCX trading at Rs 34,743 per 10 grams in evening trade in a business turnover of 19,902 lots.
Gold contracts to be delivered by October were trading higher by Rs 275 at Rs 34,935 per 10 grams in a business turnover of 5,053 lots, while the far-month December contract was trading higher by Rs 280, or 0.80 percent at Rs 35,100 per 10 grams with a business volume of 17 lots.
The value of the August contracts traded so far is Rs 5,239.34 crore and October contracts saw a value of Rs 289.17 crore.
Similarly, Gold Mini contract for July was trading up by Rs 248, or 0.72 percent at Rs 34,462 in a business turnover of 10,945 lots.
“The scenario of falling interest rates in the backdrop of failing growth and trade war, along with the addition of geopolitical threat in middle-east has created a perfect scenario for gold bulls. The gold has underperformed to other financial assets over 3-4 years and it started to catch-up since a year now. We believe that the momentum in gold prices would continue to push higher with potential targets of Rs 36,000 per 10 grams by the year's end seems very much possible and Rs 40,000 – 45,000 per 10 grams as potential targets in rupee terms by 2020. We advise caution in short term as the sharp rally could see some corrections, but investors can look to buy on dips,” said Kishore Narne, Head of Commodities & Currencies at MOFSL.At 8:08 am (ET) spot gold was trading higher by $11.70 at $1,430.85 an ounce in New York trading.The Great Diwali Discount!
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