Gold price surges to record high
In the international market, spot gold was up 0.2 per cent at $2,283.76 per ounce in morning trade after touching an all-time high of $2,288.09 earlier in the session.
Commodity experts say the sharp rise in crude prices, which rose about 12 per cent in the past week, is mainly responsible for the rally in gold rates. But there are other factors at play as well. Rising global inflation and the volatile stock market have made the yellow metal a “safe” investment bet among investors.
The spot prices of gold are headed upwards of $1,780 (approx. Rs 1.47 lakh) per ounce whereas MCX gold rate per 10gm could reach Rs 53,000 by Diwali, the experts say, adding that some profit-booking could also take place.
The depreciation of the rupee against the US dollar to a record low of 82.40 is, however, a critical variable that underpins domestic gold prices. After missing action for some years, gold prices in Delhi witnessed some movement at the beginning of 2022 as the volatile equity markets forced investors to seek safe-haven assets like gold.
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On Sunday morning, however, gold rates remained flat in Delhi, Chennai, Kolkata, and Mumbai. Delhi’s rate for 10 gm of 22-carat gold was Rs 48,010, and it was trading at Rs52,370/10 gm for 24-carat gold.
The rate in Chennai for 10 gm of 22-carat gold was Rs 48,400 and the gold rate of 24-carat gold was Rs 52,800. The rate of the precious metal in Kolkata per 10 gm of 22 carat stands at Rs47,850 and the rate of 10 gm of 24-carat gold is at Rs 52,200. The gold rate in Mumbai per 10 gm of 22-carat has been at Rs 47,850 and Rs 52,200 per 10 gm of 24-carat gold.
The yellow metal faced resistance around the key $1,740 (Rs 1,44,128) per ounce mark in global markets last week, while at the domestic market Rs 52,100 per 10 gm mark acted as a stiff hurdle for prices.
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