Gold and silver prices at an all-time high in India, prices surged by 20%
Mumbai-India (Sept 3) Gold and Silver prices in India reached the highest recently. Reports said gold prices have gone too far touching Rs 40,000 per 10 gram in Mumbai. Serious tensions between the US and China and global recession fears have pushed gold rates to a new level in the global market. In future, the gold prices are expected to reach to a new price of ₹45,342 per kg.
After the change in price, Asian equity markets are under pressure because of US-China trade tensions. The value of Rupee is also under pressure with the change in gold and silver prices. The increase in gold price makes the rupee weaker. In the global market, the rate of gold rose over 1% to $1,544.23 per ounce. It is the highest since April 2013. With the price getting high, Yields on US 10-year Treasury dropped to their lowest since 2016 and lower interest rates also boost the rate of gold.
Major tensions have been going on between US and China after US President Donald Trump announced additional charges on $550 billion of Chinese Goods. Soon after China also declared tariffs on $75 billion of US products as an act of revenge. Jerome Powell of Federal Reserve Chair said he will keep the US economy healthy. Although is it’s expected that the US-China trade dispute will not resolve easily. Traders also asserted that the US Fed will respond to the rate front aggressively.
With new tariff announcements, the US-China trade war has changed the gold and silver prices to a new level. The depreciation of Indian rupee also helped the prices of metals to go high. It is expected that the price of gold and silver will remain the same for a while. According to Pritam Kumar Patnaik, head of commodities at Reliance Commodities the prices of gold will remain between Rs 39,900 to 40,000.
In 1925, the price of 10 gms gold was Rs 18.75, in 1947, the price of gold per 10 gms reached to Rs 88.87. Later in 1970 the price of gold rose to Rs 184.50 and moved to Rs 3,200 in 1990. In 2010, the price of gold per 10 gms was Rs 18,500 and now the rate of gold has reached the highest so far to Rs 40,000.
Apart from gold, silver prices will go up to 48,000 levels in coming days. Gold ETFs reached ₹5,079.22 crore at the beginning of the year. Globally ETFs rose to 2,424.9 tons which were about 1000 tons higher if compared to post-financial crises of 1,425.1 tons. Gold prices have marked the highest level in India which is 20%. The demand for Jewellery has decreased. There is a rise in the sale of old gold jewellery as the customers take advantage of high prices, say shopkeepers.
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