This Article is From Jul 01, 2020

Gold Futures Soar To All-Time High Above Rs 48,950 Per 10 Grams

Gold jewellery prices vary in different parts of India - the second largest consumer of the precious metal - due to factors such as excise duty, state taxes and making charges.

Gold Futures Soar To All-Time High Above Rs 48,950 Per 10 Grams

Current Gold Price In India: MCX gold futures rose to as high as Rs 48,982/10 grams during the session

Gold Rate In India: Domestic gold futures held registered a new all-time high of Rs 48,982 per 10 grams on Wednesday, tracking global spot rates which clocked the highest level recorded in eight years. MCX gold futures rose 0.45 per cent to touch the Rs 48,762 per 10 grams mark at the strongest level during the session, compared to their previous close of Rs 48,762 per 10 grams. At 2:18 pm, the gold futures contract - for delivery on August 5 - quoted higher by Rs 163 per 10 grams (0.33 per cent) at Rs 48,925 per 10 grams. (Track Gold Rate In India Here)

According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the opening rate of gold jewellery stood at Rs 48,980 per 10 grams, and silver at Rs 49,716 per kilogram - both excluding Goods and Services Tax (GST).

Gold jewellery prices vary in different parts of India - the second largest consumer of the precious metal - due to factors such as excise duty, state taxes and making charges. 

In the international market, gold prices rose to their highest in nearly eight years on Wednesday, as demand for the safe-haven metal was boosted by worries about the global economic impact of surging coronavirus infections in many countries. Spot gold was last seen trading up 0.4 per cent at $1,788.06 per ounce - its highest level since early October 2012.

Domestic stock markets jumped more than 1 per cent as they entered the second half of the year, helped by heavyweight financials, although worries over the impact on the economy from a persistent surge in coronavirus cases tempered investor sentiment. The S&P BSE Sensex index soared as much as 1.54 per cent - or 538.38 points - to touch 35,454.18 during the session, whereas the broader NSE Nifty 50 benchmark climbed as much as 1.41 per cent to 10,446.90. 

In March, commodity exchanges cut down trading hours, in a shift from the practice of allowing trading till midnight, in the wake of coronavirus pandemic. The trading now begins at 9 am and ends at 5 pm, instead of 11:50 pm earlier.

Gold Price: What Analysts Say On Current Gold Rate

Navneet Damani, VP- commodities research, Motilal Oswal Financial Services:

“Positive US consumer confidence number also could not dampen gold's rally. Uncertainties around regarding the Hong Kong issue, second wave of COVID-19 is increasing distress in the market hence supporting precious metal prices."

"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."

Ravindra Rao, VP-head commodity research at Kotak Securities:

"Gold was consolidating in a narrow range for last few sessions but got a thrust to break past the key $1800/oz level benefitting from month-end and quarter-end position squaring and increasing concerns about virus cases and heightened US-China tensions."

"Gold has breached past the $1800/oz level paving way for more gains however the up move has come without any fresh new triggers hence one needs to be cautious and wait for a lower level to create fresh long positions."