Gold prices continue to soar, nears Rs 39,000 mark

Continuing the record-setting trend, gold price on Thursday hit a new high of Rs 38,970 per 10 gram by gaining Rs 150 in the national capital, according to the All India Sarafa Association, mainly on account of a weaker rupee and safe-haven buying from investors due to weak equity market.

Gold prices have been hitting a fresh high every day since Tuesday.

Silver advanced by Rs 60 to Rs 45,100 per kg on increased offtake by industrial units and coin makers.

Despite sluggish overseas trend, gold prices rose on account of sustained buying from local jewellers, traders said.

Besides, weakness in rupee and equity market also aided the rally in the yellow metal, they added.

In New York, spot gold was trading lower at USD 1,498.80 an ounce, while silver was down at USD 17.09 an ounce.

“Gold prices in the international market are hovering near the psychological level of USD 1,500 an ounce as traders stayed away from taking fresh position amid the key economic events scheduled this week,” Hareesh V, Head Commodity Research, Geojit Financial Services said.

“Expectations are high that the US Federal Reserve chair’s speech at Jackson Hole meeting on Friday would provide cues on future US interest rate cuts that may influence gold prices. Also, traders are keenly awaiting the result of G7 summit for hints of any additional steps by policy makers to push global economic growth,” he said.

In the domestic market, gold prices held firm due to a feeble Indian rupee which weakened to its lowest level this year, Hareesh said.

In the national capital, gold of 99.9 per cent purity rose Rs 150 to Rs 38,970 per 10 gram, while that of 99.5 per cent gained Rs 170 to Rs 38,820 per 10 gram.

Sovereign gold stood steady at 28,800 per eight gram.

Silver ready advanced by Rs 60 to 45,100 per kg, while weekly-based delivery gained Rs 133 to Rs 43,765 per kg.

Silver coins held flat at Rs 91,000 for buying and Rs 92,000 for selling of 100 coins.