Gold prices off record high level
Gold prices have reached record-high levels twice this month. Last day it surpassed the previous high of Rs 48,982 per 10 grams, hit on July 1. Gold prices last day in India fell Rs 246 per 10 grams from the record high level of Rs 49,348 hit in the previous session. According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the opening rate of gold jewellery stood at Rs 49,318 per 10 grams, and silver at Rs 51,232 per kilogram – both excluding Goods and Services Tax. The retail price of gold jewellery varies in different parts of India. factors such as excise duty, state taxes and making charges etc. affects the retail price of gold jewellery.
analysts believe that concerns over a quick global economic recovery and a weak US dollar continue may cap the gains in Gold.
On MCX, gold prices edged 0.01% lower to ₹48,872 per 10 gram after falling 0.6% in the previous session. Gold has struggled to extend gains after hitting a record high of ₹49,348 earlier this week. Silver prices, however, edged higher today on MCX. Silver futures on MCX rose 0.25% to ₹51,217 per kg. Weighing on gold prices are concerns about consumer demand with prices rising to record highs, say analysts.
In global markets, gold prices remained flat but held above the key $1,800 level. On a weekly basis, gold is set for a fifth straight weekly gain as a continuous surge in COVID cases in the world boosted the safe-haven appeal of gold. Spot gold was little changed at $1,801.69, up more than 1.5% for the week. US gold futures rose 0.2% to $1,806.90 per ounce.
Despite rising virus cases, US and global equity markets are still holding on recent gains amid hopes that countries may avoid major shutdowns and stimulus measures may help economic recovery pick up the pace, Kotak Securities said in a recent note.