Gold witnessed a rise for the third consecutive trading session, on Wednesday, gold prices rose by Rs 1,000 to an all-time high of Rs 1,31,800 per 10 grams in the bullion market of the national capital. This strength was seen due to continuous buying by retailers and jewelers amid the ongoing festive season.
According to All India Bullion Association, gold of 99.9 percent purity closed at Rs 1,30,800 per 10 grams on Tuesday. In the local bullion market, gold of 99.5 per cent purity rose by Rs 1,000 to a record high of Rs 1,31,200 per 10 gram (including all taxes), compared to its previous closing price of Rs 1,30,200 per 10 gram. However, silver prices fell by Rs 3,000 from the record level to Rs 1,82,000 per kg (including all taxes).
There was a big rise in silver on Tuesday
On Tuesday, the price of silver increased by Rs 6,000 to reach a new peak of Rs 1,85,000 per kg. HDFC Securities research analyst Dilip Parmar said, gold reached a new record high on Wednesday, due to the huge rise in global prices and increase in domestic physical and investment demand.
He said, although the rupee appreciation acted as a key headwind limiting gains in the domestic market, the overall bullish trend remains strong, and traders expect it to continue amid the peak of festive season buying. In international markets, spot gold reached an all-time high of $4,218.32 an ounce.
Sandeep Raichura, Chief Executive Officer (CEO) of Retail Broking and Distribution and Director of PL Capital, said, gold has now reached our second target of $ 4,200 an ounce, which is faster than expected. China’s continued buying has rekindled confidence in gold and its bullishness on a long-term basis. He said that the Reserve Bank’s purchases in ETFs and other emerging markets are continuing.
The price of gold and silver will increase further
In foreign markets, spot silver was trading 2.81 percent higher at $ 52.84 an ounce. On Tuesday it reached a new peak of $ 53.62 an ounce. Manav Modi, analyst at Motilal Oswal Financial Services, said, increased uncertainty due to US-China trade tensions and expectations of further interest rate cuts by the Federal Reserve continued to be a safe haven for both gold and silver.