Mumbai/Chennai/New-Delhi: The cost of precious metals and bullion in the country soared on Wednesday. Rates of Gold and Silver were unusually higher in several cities according to rates tracked by Sify.com.
On the Multi-Commodity Exchange, the August futures contract rose 0.91% in intra-day trading to quote Rs 48,922 per ten grams. AM Rates quoted by Indian Bullion Jewellers Association for 24Karat Gold variant stood at Rs 48,980. Other prominent associations such as Madras Jewellers & Bullion Association and the All Kerala Gold and Silver Merchants Association reported a spike in their AM rates.
Gold rates are inching closer to the magical figure of Rs 50,000 per ten grams.
Rates for 916 Gold or 22Karat Gold have picked up unusually as well. In Chennai the rates hovered around Rs 47,640 per ten grams while in Kerala the rates hovered at Rs 45,231. Sify's state-wise rates reflected highest rates in cities of states and UTs such as Maharashtra, Jharkhand, Bihar, Pondicherry, Andhra Pradesh, Chattisgarh, and Telangana.
The major reason for the spurt is attributed to favourable outlook on Gold, higher international benchmark rates and the rising cases of Covid. The benchmark rate for Wednesday stood at $1,768.10 per troy ounce. The Rupee gained strength by mid-noon to quote 75.34 even as forex rates in the past six trading sessions remained range bound between 75.62 - 75.80.
In terms of outlook economists including SBI ecowrap's analysts have observed an up-tick in Gold loans.
Also, the outlook on buying Gold has picked up in Covid times despite sales remaining lacklustre owing to lockdown and the pandemic. The World Gold Council's latest India outlook - a survey of over 1,000 women respondents showed an uptick in consumer sentiment. 37% who have never purchased Gold in the past were keen to buy. 49% respondents said they had purchased Gold in the past and looked forth to investing in the yellow metal. Only 14% said they would not invest in Gold.
Meanwhile, rates for Silver went up by a range 3-5 percent across several cities in the country. Average rates quoted by jewellers for Silver is Rs 52,005 per kilo while highest rate quoted was Rs 54,300.
For latest Gold rates visit the Sify Gold rates page.