Gold prices today in India rose to Rs 48,559 from Rs 48,534 per 10 gram while silver also made marginal gains from Rs 48,556 to settle at Rs 48,600 per kg, according to India Bullion and Jewellers Association. Despite no spike in demand, prices of the yellow metal had touched the all-time high mark on Tuesday of Rs 48,825 before dropping over Rs 250.
Gold jewelry price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold declined Rs 150 per 10 gram to retail at Rs 47,100, while in Chennai it is Rs 180 less at Rs 46,270. However, in Mumbai, the rate of the precious metal went up to Rs 50 to Rs 48,350 for 22-carat while 24 carats is bought at Rs 48,450, according to the Good Returns website. The price of 24-carat gold prices in Chennai dropped to Rs 50,480.
On MCX, August gold futures rose 1.01 percent to Rs 48,730 per 10 gram. Silver July futures also surged over 2% to Rs 50,300 per kilogram. MCX, which runs the country’s largest commodity derivatives segment (CDS), received SEBI nod to offer trading on the gold mini (100 gm) and silver 5-kilo options.
The gold mini option woud be launched from August expiry and onwards with the expiry matching with gold mini futures. The normal expiry date is the 5th of every month for mini futures. Three concurrent month contracts will be available, tick size will be 50 paise and price intervals between strikes at Rs 100. The maximum client position limit will be 10 tonnes and for the broker, 100 tonnes.
Gold prices – In the international market, gold surged to its highest in nearly 8 years on Tuesday as mounting fears of a resurgence of new coronavirus cases kept safe-haven demand for gold alive, setting the precious metal on the path for its biggest quarterly gain since March 2016.
Spot gold jumped at 0.5% to $1,779.44 per ounce by at 2:09 p.m. The session high was around $1,785.46, its highest since October 2012 as well. US gold futures settled up 1.1% at $1,800.5.
“The underlying bullish fundamentals in the gold market that remain and these include the Covid-19 that is still prompting safe-haven demand, the central bank stimulus that has been record-setting,” as well as could cause inflation in the future, as told Kitco Metals senior analyst Jim Wyckoff. Some US states have reversed reopenings and closed businesses to combat a spike in cases. US Federal Reserve Chair Jerome Powell on Monday said the outlook for the world’s biggest economy was “extraordinarily uncertain”.
“US yields have been continued to grind lower and the result of that is that real rates are printing new lows as well” which has boosted the precious metal, as told Daniel Ghali, commodity strategist at TD Securities.