In India, gold and silver prices have reached new heights today, which is tracking a strong global trend. On MCX, August gold contracts rose 1.73% to $ 36,192, while October contracts rose 1.75% to $ 36,904, hitting new highs with both contracts.
After the September contract on MCX, gold and silver gained 2.42% and it came down to $ 42,366. In global markets, gold prices were ruling above the critical mark of $ 1,450 an ounce, is reflected in the global geopolitical and business tension enhanced by its Haven appeal as a risk asset such as shares.
Gold prices jumped 0.65% to $ 1,450.41 an ounce in global markets Last week, American President Donald Trump announced in a surprise move that he would slap 10% tariff for $ 300 billion in Chinese imports, a boost after renewing trade tension between the world’s two largest economies is. China has vowed to fight back.
A sudden increase in the China-US trade warts allowed investors to seal traditional safe ports, including yen, bonds, and gold. Asian stocks today hit a 6-month low.
Lower interest rates, central bank purchases, and resurgent investor interest are expected to support gold prices, according to a Reuters poll of analysts. Fears of a global recession have sent investors flooding bullion, which is traditionally seen as a safe asset to keep in troubled times.
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Investors in hurrying back in both gold and silver in June and July, help to drive prices. Silver prices are also increasing rapidly this year. Lower interest rates make non-yield gold and silver more attractive.
According to PCG, Commodities & Currency Business, Kotak Securities’ EVP and Business Head Ashish Nanda said, the drop in gold prices indicates that there is a possibility of continuing global weakness in other asset classes like stocks.
Bet on high prices for both metals on COMEX exchange now outnumber the stakes at the lowest prices since the most significant amount since 2017, while the holdings of silver in foreign currency increased to the largest on record turnover of funds tracked by Refinitiv gave information.
However, the demand for gold in India can be soft on record prices, the World Gold Council (WGC) says. Dealers said that higher prices have also increased the supply of scrap supplies in India. India last raised import duty on gold from 10 percent to 12 decimal 5 percent last month.