Gold price crosses record ₹40,000-mark as recession fears seep in

August 29, 2019

New Delhi-India (Aug 29)  Gold prices on Thursday jumped ₹250 to breach the record ₹40,000 per 10 gram level for the first time at the bullion market here on strong demand from investors amid growing fears of a global economic slowdown.

Maintaining its record-breaking run for the second day, gold spurted by ₹250 to a fresh life-time high ₹40,220 per 10 grams, according to the All India Sarafa Association. The precious metal had soared by ₹300 to close at ₹39,970 per 10 grams on Wednesday.

Closing in on the ₹50,000-mark, silver rose by ₹200 to ₹49,050 per kg on robust demand from industrial units and coin makers amid strong overseas trend.

Lingering worries over a possible global recession and uncertainty over the U.S.-China trade talks boosted the demand for a safe haven bet, traders said.

Fresh buying by jewellers ahead of the festive season also aided the rally in the precious metal.

HDFC Securities senior analyst (Commodities) Tapan Patel said gold prices have kept the firm trading so far on mixed global cues as inverse bond yields from the U.S. and Germany have raised economic slowdown fears.

“The development on Brexit will be the next thing for the markets to watch out while progress in U.S.-China trade talks and U.S. Federal Reserve’s stance [on rate cuts] are constant factors to determine the price trend for gold,” Mr. Patel added.

Gold was firm in global markets on possible recession fears. Gold was trading at $1,539 an ounce in New York after hitting a high of $1,550 an ounce. Silver was up 1.15% at $18.63 an ounce.

Besides, a weaker rupee also helped in upward movement of the gold price, they added. In early trade, the rupee depreciated by 17 paise to 71.95 against the U.S. dollar on Thursday.

In the national capital, gold of 99.9% and 99.5% purity jumped ₹250 each to ₹40,220 and ₹40,050 per 10 gram, respectively.

Sovereign gold soared ₹400 to ₹30,200 per eight grams.

Silver ready rose ₹200 to ₹49,050 per kg, while weekly-based delivery climbed ₹814 to to ₹47,230 per kg.

Silver coins were in good demand and traded higher by ₹3,000 at ₹1,01,000 for buying and ₹1,02,000 for selling of 100 coins.


Silver Phoenix Twitter                 Silver Phoenix on Facebook