Gold Rate In India: Domestic gold futures surged to a new all-time high of Rs 52,435 on Tuesday tracking global rates of the yellow metal, surpassing an existing record of Rs 52,410. Multi Commodity Exchange (MCX) gold futures - due for an August 5 delivery - climbed up 0.64 per cent (Rs 334) at the strongest level recorded in morning deals to quote at Rs 52,435. Global gold rates soared by almost $40 higher to touch a record $1,980 an ounce on Tuesday before easing on profit-booking, as investors wager the Federal Reserve will reaffirm its easy policy at a policy meeting this week.
(Also Read: Gold's "Dream Run" May Continue, Say Analysts)
At 10:20 am, the MCX gold futures traded with a gain of Rs 178 - or 0.34 per cent - at Rs 52,279. (Track Gold Rate Here)
(Gold futures took out an existing record high of Rs 52,410 on Monday)
Precious metal prices have broken a series of records over the past few weeks amid rising COVID-19 cases around the globe and worsening ties between the world's two largest economies.
Typically, any sign of uncertainty in the financial markets boosts the appeal of gold as a safe-haven bet, as investors rush away from riskier asset classes.
In the international market, spot gold surged to record peaks on Tuesday before the sheer scale of its gains drew a burst of profit-taking, which lifted the dollar from two-year lows and curbed early equity gains. It was last seen trading at $1,947 per ounce in wild trade.
Gold jewellery prices vary in different parts of the country due to factors such as state taxes and making charges.
Meanwhile, domestic stock markets climbed on Tuesday, led by auto and IT stocks, as equities across Asia gained on hopes that another flood of US stimulus would cushion the global impact of renewed coronavirus outbreaks.
The S&P BSE Sensex index rose as much as 0.65 per cent to 38,180.37 and the broader NSE Nifty 50 benchmark climbed to as high as 11,199.15, up 0.61 per cent (67.35 points) from its previous close.
Since March, domestic commodity exchanges have trimmed trading hours on account of pandemic-related restrictions.
What Analysts Say On Gold Rates
"Gold has been on an upward move for last few days however the momentum has intensified post-break past the $1900/oz level. Gold continues to remain supported by weaker US dollar, rising coronavirus cases, increased US-China tensions, ETF (exchange traded fund) inflows and hopes of additional stimulus measures," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"While the momentum is still positive, we recommend some caution in buying aggressively at current levels as there is a good possibility of some position squaring around Fed decision tomorrow.”