Gold Nears Rs 40,000-Mark; Silver Skyrockets
An employee shows a gold necklace to a customer inside the Dwarkadas Chandumal Jewelers store in the Zaveri Bazaar area of Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)  

Gold Nears Rs 40,000-Mark; Silver Skyrockets

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Resuming its record-setting streak, gold price jumped by Rs 300 on Wednesday to a fresh all-time high of Rs 39,970 per 10 gram in New Delhi, according to the All India Sarafa Association. This was on higher demand from local jewellers and the yellow metal’s appeal as safe-haven amid global economic concerns.

Silver skyrocketed Rs 2,110 to Rs 48,850 per kilgoram, helped by positive trend overseas and strong demand from industrial units and coin makers. In the U.S. market, the white metal was trading 0.61 percent up at $18.38 an ounce.

Globally, gold was almost flat at $1,543 an ounce in New York.

Traders and analysts said higher uptake by local jewellers ahead of festive season and investors preferring the yellow metal as a safe-haven asset helped the yellow metal touch its new all-time high level.

“Spot gold held steady near a six-year high in the international market supported by increased safe haven demand,” said Hareesh V, head (commodity research), Geojit Financial Services.

He added that recession fears accompanied by weak global growth outlook and trade talk uncertainties between the U.S. and China have been boosting the yellow metal's safe haven demand. Moreover, a weaker rupee against the dollar is also supporting the rally, he said.

Hopes of further interest rate cut by the U.S. Federal Reserve amid disappointing economic releases also prompted investors to focus on safer assets like gold, Hareesh added.

In the U.S., the yield curve inversion on Tuesday deepened to levels not seen since 2007, rekindling fears of a looming recession and making the yellow metal attractive as a safe-haven asset.

In the national capital, gold of 99.9 percent and 99.5 percent purity jumped Rs 300 each at Rs 39,970 and Rs 39,800 per 10 gram, respectively. Sovereign gold soared Rs 300 to Rs 29,800 per eight grams.

Silver ready skyrocketed Rs 2,110 to Rs 48,850 per kg, while weekly-based delivery jumped 1,289 to to Rs 46,416 per kg. Silver coins were in good demand and traded higher by Rs 2,000 at Rs 98,000 for buying and Rs 99,000 for selling of 100 coins.

Also read: Citi Sees a ‘Bullish Break’ for Gold 

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