Chennai: Gold prices on Thursday hit a record high at Rs 3,300 per gram (Rs 26,640 per sovereign) here and jewelers expect the price to continue its upward movement that began a little over a week ago.
"The price of gold has been climbing ever since the US Federal Reserve, which is like our Reserve Bank, announced move to cut the interest rates and the investors began moving away from the bonds market into buying the yellow metal for investment", said N Balu, chairman, All-India Gem & Jewellery Domestic Council. He was referring to the US Federal Reserve Chairman Jerome Powell hinting last week at a rate cut that has prompted investors to move towards safe-haven assets like gold.
Balu added, "Our gold price went up by RRs 1000 per sovereign over the last week". Listing out the other reasons for this yellow zoom, he told DC, that the Iran-US tension in the Middle East and the US-China trade war have also contributed. And then came the 'final blow' in the shape of an increase in the customs duty for gold imports from 10 per cent to 12.5 per cent.
"We are expecting the gold price to climb further and perhaps even touch Rs 30,000 per sovereign by Deepavali", said Balu.
PTI adds from Delhi:
Silver also followed the suit and rose by Rs 300 to Rs 39,200 per kg due to more offtake by industrial units and coin makers. Globally spot gold was trading at USD 1,420.80 an ounce. Similarly, silver was also up at USD 15.24 per ounce in New York. According to the All India Sarafa Association, gold of 99.9 per cent and 99.5 per cent purity surged Rs 930 each to
Rs 35,800 per 10 gram and
Rs 35,630 per 10 gram, respectively, in the national capital. Traders said that apart from the global movement, demand from local jewellers also supported the rise in gold prices. Sovereign gold also advanced by Rs 100 to Rs 27,400 per eight gram. Silver ready also rose Rs 300 to
Rs 39,200 per kg and weekly-based delivery gained Rs 356 to Rs 38,356 per kg. However, prices of silver coins held flat at Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces.
