Gold price set another all-time high, continuing its record streak as it neared Rs, 40,000. Silver too was on the up as it soared Rs 2,110 to Rs 48,850 per kg
New Delhi: The price of gold jumped Rs 300 on Wednesday to another all-time high of Rs 39,970 per 10 gm, according to the All India Sarafa Association, on higher demand from local jewellers and the yellow metal's appeal as a safe haven asset amid global economic concerns.
Helped by positive trend overseas and strong demand from industrial units and coin makers, silver skyrocketed Rs 2,110 to Rs 48,850 per kg. In the US market, the white metal was trading 0.61% up at $18.38 an ounce.
Globally, the yellow metal 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 US and China have been boosting the yellow metal's safe haven demand. Moreover, a weaker rupee vis-a-vis dollar is also supporting the rally, he said.
Hopes of further interest rate cut by the US Federal Reserve amid disappointing economic releases also prompted investors to focus on safer assets like gold, Hareesh added.
In the US, 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% and 99.5% purity jumped Rs 300 each at Rs 39,970 and Rs 39,800 per 10 grams, 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 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.
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Last Updated Aug 28, 2019, 5:24 PM IST