Mumbai: Rising for the fifth consecutive day, gold prices on Monday again surpassed its previous high by surging Rs 675 to Rs 39,670 per 10 gram in the national capital, according to the All India Sarafa Association, mainly due to a weaker rupee and strong global trend. Gold prices in Mumbai breached Rs 40,000 per 10 gm, which includes 3% Goods and Services Tax, for the first time on record. The spike was due to higher global prices as well as the rupee’s fall to below the crucial psychological level of 72 against the dollar.
Gold prices have been hitting a fresh high everyday since August 20. Silver also soared Rs 1,450 to Rs 46,550 per kg on fresh offtake by industrial units and coin makers. According to analysts, apart from persistent buying from jewellers, a weaker rupee and positive trend overseas were among the factors that aided the rally in gold prices.
"Globally, gold rallied to a fresh six-year high of USD 1,554.56 an ounce in the international market (during the day). Retaliatory tariffs by the US and China in the previous week diminished hopes of an immediate trade deal that lifted gold's safe-haven appeal. Also, feeble global equities and signs of escalating fragile global economic sentiments prompted investors to find shelter in safe assets like the yellow metal," said Hareesh V, head (commodity research), Geojit Financial Services.
He added that in the domestic market, prices surged to all-time highs supported by a strong international market and a feeble rupee.
The domestic currency plummeted 42 paise to 72.08 against the US dollar in early trade, due to strong dollar demand from banks and importers amid unabated foreign fund outflows Meanwhile, spot gold in the international market was trading higher at USD 1,529 an ounce in New York and silver was up at USD 17.68 an ounce. In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose Rs 675 each to Rs 39,670 and Rs 39,500 per 10 gram, respectively.
Sovereign gold surged by Rs 700 to 29,500 per eight grams.