Mumbai/New-Delhi/Chennai: Gold and Silver rates in the country touched a new peak on Saturday morning. The rally was in sync with international benchmark rates that touched $1902 per ounce.
In early trade on Saturday, MCX gold futures for August touched an all-time high of Rs 51,184 per ten grams while Silver futures for August had previously closed at Rs 61,190 per kilo.
The peak in benchmark and spot rates reflected in a rally for 22 and 24 Karat gold rates quoted by jewellers across several Indian cities.
Data tracked by Sify.com for over sixty Indian cities revealed that the rates for 22 Karat remained range-bound at Rs 48,500 to Rs 49,200. Bullion was selling in a range of Rs 51,200 to Rs 51,800. These rates remain exclusive of GST and making charges.
The fresh highs are attributed to anxious investors who fear of a dent in earnings next week in US majors such as Amazon and Apple. Such fears have prompted investors to dash for precious metals such as Gold, Silver and Palladium - safe-haven instruments that promise to safeguard returns.
The week bygone has already seen Silver and Gold spurt to fresh levels driven majorly by fears of a larger impact from Covid, probability of a second round of US government funding and geopolitical turmoil - US pressing China to shutdown consulates in Houston.
In the week gone by, benchmark gold rates rallied from $1,815 to $1,902. Analysts think spot-Gold could touch $1917, the highest point touched on April 23, 2011. From a domestic perspective, the bulls expect Gold to touch levels of Rs 55,000 fueled mainly by the great Indian shopping season of Dhanteras and Diwali.
If USD-INR holds steady at current levels of 74.72, a benchmark Gold rate of $1,917 [per ounce] corresponds to 24 Karat Gold in range of Rs 52,370 - 52,220 per ten grams. At that peak, 22 Karat gold could sell for 49,000 - 50,200 across several Indian cities.
Image: Sify.com is subscribed to AFP. Image attributed to PAUL FAITH for AFP.