Extreme volatility in bullion and silver, 22 Karat gold hits milestone despite lockdown

Source :Sify
Author :Finance Desk
Last Updated: Tue, Jul 28th, 2020, 16:09:34hrs

Mumbai/New-Delhi/Chennai: Shuttered jewellery stores and a dent in jewellery buying have failed to avert Gold rates from picking steam. On Tuesday, benchmark gold rates touched another fresh high causing jewellery rates to touch fresh milestones.  

Gold rates for 22 Karat gold reported by jewellers and merchant associations surpassed the barrier level of Rs 50,000 for cities such as Chennai, Delhi, Kolkata, Hyderabad and even Bengaluru. In cities such as Mumbai, Jaipur, Ahmedabad, and other cities the rates were closer to the milestone mark according to data collated by Sify.com from several agencies.  

Despite lockdown and several jewellery stores witnessing a dent in sales, Gold rates touched the new levels owing to a pick up in benchmark and spot bullion rates. A similar trend was observed for Silver and other precious metals such as Palladium and Platinum.  

On the MCX Gold futures for August, bullion hit an intra-day high of Rs 52,435 per ten grams even as benchmark rate quoted by the London Bullion Market Association read $1,936.65 per troy ounce. The LBMA rates were reported for Monday morning auction. MCX rates contracted from their highs to trade at Rs 51,975.

Spot rates for futures contracts with US exchanges hovered around $1907.20 to $1981.20 per troy ounce with bullish trends despite motivating results by US technology majors and an uptick in consumer durable sales. US Gold rates in the past ten days have climbed from $1745 per ounce fuelled majorly by geopolitical concerns and a lack of optimism for the economy to improve from Covid loss.  

Silver futures on the MCX for the month of August touched an intra-day high of Rs 67,560 and contracted to Rs 64,152, posting a decline in 1300 points [until the time of publishing this story]. Merchant rates reflected Silver surpassing the crucial threshold of 70,000 per kilo. Actual rates for several cities may differ and have been collated on this page.  

With the latest revision, Gold rates for 22 Karat, 24 Karat and even 750 gold touched fresh highs. The spurt in gold rates especially 22 Karat gold is in stark contrast to the dent in imports. India imported barely 11 tonnes of Gold in June [Reuters report] compared to 77.53 tonnes in June'19.  

Disclaimer: Image in article is a file picture. Rates as mentioned at the time of publishing this story.