Gold price at all-time record, climbs Rs 40K mount in Mumbai spot market, further rally expected
Gold prices in Mumbai have crossed Rs 40,000 per 10 grams. Industry players operating in the Mumbai bullion markets informed about the development.
Gold prices in Mumbai crossed Rs 40,000 per 10 grams on August 26th. Industry players operating in the Mumbai bullion markets revealed that the precious yellow metal scaled the Rs 40,000 per 10 gm level just a few hours after the opening of the stock markets today and made a high of Rs 40,220 per 10 grams. Interestingly, gold prices have sustained above Rs 40,000 levels and it was trading at Rs 40,045 per 10 gram at 1:34 PM. Gold price in Mumbai Sport market had closed at Rs 38,700 per 10 grams in last trading day and that means rates soared by Rs 1500 per 10 grams overnight. According to the global commodity market experts, gold price may touch $1560 to $1580 levels by mid-October, 2019 in international commodity market.
Speaking on the rise in gold price above Rs 40,000 in Mumbai bullion markets Bachhraj Bamalwa, Chairman at All Indian Gems & Jewellery Federation said, "This is indeed an unprecedented high, but lower by at least 20 per cent in US Dollar terms. Presently, it is $1,545 on the Comex, lower that $1,920 in September 2011." Bamalwa went on to add that if the current global political crises and the trade wars continue to escalate, then the gold prices may shoot up further, crossing Rs 41,000 per 10 gms in the next few months. However, he said optimistically that despite the zooming prices, demand for gold may be marginally affected, around 10 per cent or so, as the wedding and festival seasons begin next month, which are incomplete without gold in India. India consumes an average of 700-800 tonne of the yellow precious metal annually, said Bamalwa.
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Speaking on the gold price outlook Anuj Gupta, Deputy Vice President — Currency and Commodities at Angel Broking said, "Negative long-term bond yield in the US, US Fed in mood to further cut down the interests and fresh escalation in the China-US trade war after President Donald Trump's tweets are some major triggers that are expected to continue till mid-October."
Gupta went on to add that stagnating US inflation would also lead to rising in the gold price as controlled inflation in the US would force Fed chief further to cut down the interest rates. He said that in international markets, the gold price is expected to touch anywhere around $1,580 per ounce levels.
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