Gold crosses record Rs 40,000-mark as recession fears seep in


NEW DELHI, Aug 29:Gold prices on Thursday jumped Rs 250 to breach the record Rs 40,000 per 10 gram level for the first time at the bullion market here on strong demand from investors amid growing fears of global economic slowdown.

Maintaining its record-breaking run for the second day, gold spurted by Rs 250 to a fresh life-time high Rs 40,220 per 10 grams, according to the All India Sarafa Association. The precious metal had soared by Rs 300 to close at Rs 39,970 per 10 grams on Wednesday.

Closing in on the Rs 50,000-mark, silver rose by Rs 200 to Rs 49,050 per kg on robust demand from industrial units and coin makers amid strong overseas trend.

Lingering worries over a possible global recession and uncertainty over the US-China trade talks boosted the demand for safe-haven bet gold, traders said.

Fresh buying by jewellers ahead of the festive season also aided the rally in the precious metal.

HDFC Securities Senior Analyst (Commodities) Tapan Patel said gold prices have kept the firm trading so far on mixed global cues as inverse bond yields from the US and Germany have raised economic slowdown fears.

“The development on Brexit will be the next thing for the markets to watch out while progress in US-China trade talks and US Federal Reserve’s stance (on rate cuts) are constant factors to determine the price trend for gold,” Patel added.

Gold was firm in global markets on possible recession fears. Gold was trading at USD 1,539 an ounce in New York after hitting a high of USD 1,550 an ounce. Silver was up 1.15 per cent at USD 18.63 an ounce.

Besides, a weaker rupee also helped in upward movement of the gold price, they added. In early trade, the rupee depreciated by 17 paise to 71.95 against the US dollar on Thursday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity jumped Rs 250 each to Rs 40,220 and Rs 40,050 per 10 gram, respectively.

Sovereign gold soared Rs 400 to Rs 30,200 per eight grams.

Silver ready rose Rs 200 to Rs 49,050 per kg, while weekly-based delivery climbed Rs 814 to to Rs 47,230 per kg.

Silver coins were in good demand and traded higher by Rs 3,000 at Rs 1,01,000 for buying and Rs 1,02,000 for selling of 100 coins. (PTI)


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