Gold prices on Tuesday touched a record high of Rs 38,770 per 10 gram in the national capital after gaining Rs 200 on persistent buying from jewellers even as the precious metal lost steam overseas, according to the All India Sarafa Association. Silver, however, plunged Rs 1,100 to Rs 43,900 per kg on reduced offtake by industrial units and coin makers.
Despite weak trend overseas, the precious metal gained in the domestic spot market mainly on increase in demand from jewellers, traders said.
Besides, a weaker rupee also supported the surge in the yellow metal, they added.
“Globally, spot gold held steady near USD 1,500 an ounce weighed down by a strong US dollar and higher level profit-booking. However, traders remain cautious on taking big positions ahead of the key economic events like the US Federal Reserve’s July meeting minutes and Jackson Hole seminar later this week,” said Hareesh V, head (commodity research), Geojit Financial Services.
The US Federal Reserve will kick off its annual Economic Policy Symposium later this week in Jackson Hole, Wyoming, where its chair Jerome Powell is expected to speak on Friday.Hareesh further added that the meeting is expected to offer cues on further interest rate cuts that may influence the trend of the yellow metal. “At the same time, domestic gold prices edged higher to due to a weak Indian rupee”.
Meanwhile, in the international market, spot gold was trading lower at USD 1,496.60 an ounce in New York and silver was down at USD 16.93 an ounce.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity gained Rs 200 to Rs 38,770 and Rs 38,600 per 10 gram, respectively. The precious metal had touched its previous all-time high of Rs 38,670 per 10 gram on Saturday.
Sovereign gold on Tuesday, however, dropped Rs 200 to Rs 28,600 per eight grams. Silver ready plunged Rs 1,100 to Rs 43,900 per kg, while weekly-based delivery fell Rs 113 to Rs 43,422 per kg. Silver coins traded lower and dropped by Rs 2,000 to Rs 89,000 for buying and Rs 90,000 for selling of 100 pieces.
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