On Tuesday, Gold proved the adage of "old is gold", holdings its nerves, in a market which saw equities struggle and crypto-currency investments such as bitcoin crash into newer lows. Gold in fact, raced off to a 14 month high, Rs 31600 per ten gram, up by nearly Rs 330 in the local Delhi bullion market, in sync with overseas trends.
Gold, considered as a safe haven, is becoming attractive, especially after the slump in equities markets, and the week could see Gold gaining fresh highs. In Singapore, gold edged up by 0.27 per cent to $1,342.60 an ounce and silver up 0.84 per cent to $16.85 an ounce.
Gold was running at a spot price of $42.88 per gram, and had even bounced to a high of $43.26 in the day. The previous high for Gold was on 25th Jan 2018 ($43.56), 7th September 2017 ($43.28).
Jewellers attributed the reason majorly to the equity slump across global markets. But here is how the slump in equities market panned out:
- US' Jobs and economic data underscored the strength of the economy, shutting off a bull-trend on the bond market, rattling equity investors. On Feb 2nd, the Dow Jones Industrial Average plunged by 666 points
- $4 trillion has been wiped off from the global equity markets. Rising fears of interest rate hike, throws investors off. On Tuesday, Dow Jones industrial average drops by 4.6%.
- Benchmark indices of Australia, Shanghai, Hong Kong, Indonesia, Japan, Malaysia, Singapore and Taiwan are down in the range of 2.8% - 5%. South Korea, faring slightly better, was in the negative by 1.5%.
- A similar bearish trend was observed for cryptocurrencies. Bitcoin losing 11% in value to trade at $6900. Ethereum, Ripple, Cardano, NEO have all faced losses, by as much as 11-18%.
- BSE Sensex ended the day in the negative, below the 34000 mark. A 561 point loss.
The trend on gold is expected to run bullish for a couple of sessions. Jewelers also said that the domestic demand for Gold came from the ongoing wedding season. This could perhaps explain why Gold was trading higher, although Sovereign Gold held the rate of Rs. 24,800 per eight grams.
Currently the prices at major 5 cities is in an upward trend, barring Kolkata. Here are prices for the 24 Karat variant.
- Chennai at Rs 3113.36, up by 0.52%.
- Kolkata at Rs 3184.06 down by 0.43%
- Hyderabad at Rs 3128.34 up by 1.21%
- Mumbai at Rs 3186.09, up by 0.5%
- Delhi at Rs 3122.87, up by 0.51%
Prices in Hyderabad are at a peak. Here, price per gram of 22 Karat Gold in major cities, increased by a margin of 0.5-1%.
- Chennai at Rs 2911 up by 0.52%.
- Kolkata at Rs 2977.09, down by 0.43%
- Hyderabad at Rs 2925 up by 1.21%
- Mumbai, at Rs 2979, up by 0.5%
- Delhi, at Rs 2920, up by 0.51%
Commodity markets also saw Silver price surge by Rs 500. Current market rates are in the range of Rs 40,000 per kg, and for futures, especially on weekly deliveries, rates are Rs 510 up at Rs 38960 a kg.
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