Gold Prices Reach Close Enough To Record High

Gold prices in India went high today after it rebounded in global markets.

Gold futures for August delivery surged 0.7% to ₹35,096 per 10 gram on Multi Commodity Exchange of India (MCX).

On Friday, gold futures had hit a record high of ₹35,100 after the government increased import duty on gold to 12.5%, from 10%. In global markets, gold prices rose for a third day after US Federal reiterated its dovishness, notwithstanding the strong June job numbers. Domestic silver prices also followed global trend. Silver prices on MCX hardened by 0.40% to ₹38,464 per 1 kg.

Spot gold prices in Singapore today rose to as much as 0.6% to $1,427.23 an ounce, trading at a near six-year high level. Gold hit $1,439.21 on June 25, the highest level since 2013.

In his testimony to Congress, US Fed Chief Jerome Powell on Wednesday pointed to “broad” global weakness that was clouding the US economic outlook amid uncertainty about the fallout from the Trump administration’s trade conflict with China and other nations, boosting the case of a boosting the case for an interest rate cut later this month. The minutes from the Fed’s previous policy meeting also showed many policymakers thought more stimulus would be needed soon. Lower rates boost the appeal of non-interest-bearing assets like gold.

In the wake of Powell’s comments, the US dollar sagged, with the dollar index coming off from a three-week peak.

Indicative of the bullish sentiment on gold, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.8%on Wednesday.

Elsewhere, silver gained 0.3% in global markets to $15.28 per ounce.

Gold prices have rallied this year with geopolitical and trade tensions also spurring demand. Buying from global central banks have also supported the bullion. The Chinese central bank increased its gold reserves for a seventh straight month in June, data showed. China is the world’s biggest consumer of the yellow metal.