Extending its Tuesday’s rally, gold price hit fresh all-time high of Rs 34,622 per ten grams in futures trade Wednesday on heavy buying as rupee plunged to its new record low of 68.75 against the US dollar. The new spurt in gold prices had certainly discouraged buyers who were looking forward to have some festive shopping but not in Nagpur. The gold prices in the city prevailed around Rs 31,500 however the MCX read the prices firmed around Rs 34,000.
Kishore Sheth of Batukbhai Jewellers told Nagpur Today on Wednesday, “Though the price trends at Rs 34,000 at Multi Commodity Exchange (MCX) but the jewelers here are selling yellow metal at Rs 31,500. This is being done just to ensure the sale meter does not run down in the ongoing festive season.”
Market participants also enlarged their positions in line with a firming trend overseas.
At the Multi Commodity Exchange (MCX), gold for delivery in October gained further by Rs 910 to Rs 34,622 per ten grams as against its previous close of Rs 33,715.
Similarly, silver for delivery in September spurted by Rs 1,710 to Rs 59,000 per kg after hitting intra-day high of Rs 59,580.
Gold price in overseas markets, which normally set price trend on the domestic front, extended gains to a fifth straight session today, trading at its highest in more than three months on safe-haven buying due to geopolitical tensions in Syria.
As per analysts, the possibility of US military action against Syria is driving demand for safe-haven assets including gold.
Spot gold last traded up USD 8.70 or 0.61 percent at USD 1,425.70 per ounce. having earlier hit USD 1,435.30, which marked the highest since May 14.
In New York, gold for December delivery rose by USD 27.10 or 2 percent to settle at USD 1,420.20 an ounce on the Comex division of the NYMEX.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.10 percent, or 0.90 tonnes, to 921.03 tonnes on Tuesday