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Gold Prices Back Above Rs 30,000: Five Things To Know

Globally, gold prices rose to highest in nearly 10 months on Friday.

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Gold Prices Back Above Rs 30,000: Five Things To Know

Gold prices rallied to Rs 30,400 per ten gram in New Delhi.

Boosted by higher global prices, gold rates back home recaptured the Rs 30,000 level this week. Gold prices rallied for the second day on Saturday, rising by Rs 200 to Rs 30,400 per ten gram at the bullion market in New Delhi. Besides, higher demand from local jewellers ahead of the festive season also helped the upswing. In the national capital, gold of 99.9 per cent and 99.5 per cent purity advanced by Rs 200 each on Saturday to Rs 30,400 and Rs 30,250 per 10 grams respectively.

1) Globally, gold prices rose to highest in nearly 10 months on Friday after US job growth slowed more than expected in August. Spot gold prices hit $1,328.80 in New York, the highest since November 9. Weak jobs US report could make the Federal Reserve cautious about raising interest rates again this year, say some analysts.

2) Globally, gold prices are still likely to rise further after prices increased by 4.1 percent in August, the biggest monthly gain since January, said Mitsubishi analyst Jonathan Butler.

3) "The technical uptrend is well established, there is continuing uncertainty over North Korea's nuclear ambitions and an imminent wrangle between Congress and the White House over the debt ceiling that must be solved by late September to avoid technical default," he said. Gold prices typically go up when there is an increase in global geopolitical tensions.

4) Domestic gold prices closely track global prices, as India meets almost all its requirements from imports. Besides that import duties and the dollar-rupee value also affects domestic gold prices. Silver too topped the Rs 41,000-level on increased offtake by industrial units and coin makers.

5) Recently, the government imposed import restrictions as traders were taking advantage of a tax change that enabled them to ship in gold from South Korea without paying the customs duty. (With Agency Inputs)
 

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