Gold Rate In India: Domestic gold and silver futures soared to touch new all-time highs on Tuesday. MCX gold futures, due for delivery on August 5, gained by Rs 552 – or 1.13 per cent – to a record Rs 49,579 during the session, whereas silver futures (due for a September 4 delivery) jumped by Rs 3,045 – or 5.64 per cent – to Rs 57,050. The gold and silver contracts surpassed their existing record highs of Rs 49,555 and Rs 57,036 respectively. Gold futures ended the session up 1.07 per cent at Rs 49,550 and silver up 5.4 per cent at Rs 56,921. (Track Gold Rate In India Here)
According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the closing rate of gold jewellery stood at Rs 49,440 per 10 grams, and silver at Rs 54,850 per kilogram – both excluding Goods and Services Tax (GST).
— IBJA (@IBJA1919) July 21, 2020
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 rates scaled a nine-year peak propelled by a softer dollar and expectations of more stimulus measures to resuscitate pandemic-hit economies, while silver sprinted past $20 for the first time since September 2016. Spot gold was last seen trading 0.4 per cent higher at $1,823.29 per ounce, having hit its highest level recorded since September 2011 earlier on Tuesday.
Domestic stock markets closed higher for the fifth session in a row, hitting a more than four-month peak, as hopes for a COVID-19 vaccine being available as early as this year offset fears over surging domestic coronavirus cases. The S&P BSE Sensex index ended 1.37 per cent higher at 37,930.33, and the broader NSE Nifty 50 benchmark closed up 1.27 per cent at 11,162.25, led by financial and energy stocks.
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.
What Analysts Say
“Gold has bounced back after taking support near $1790/oz level however price is yet to break past the 2011 highs set earlier this month. Unless we see a break above that level, gold may continue to trade in a narrow range,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
“Gold may witness choppy trade as market players assess virus and geopolitical risks however general bias may be on the upside owing to weaker US dollar and strong investor buying,” he added.