×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Gold prices hit all-time high, cross Rs 50,000 per 10 gram, dampen retail demand

Last Updated 22 July 2020, 07:57 IST

Gold prices in India hit a record high on Wednesday, tracking a global rally, as expectations of more stimulus to resuscitate pandemic-hit economies lifted the metal's appeal as an inflation hedge.

Local gold futures reached an all-time high of Rs 50,060 per 10 grams, taking their gains to over 28 per cent in 2020 after rising a quarter in 2019.

However, the price rise dampened retail demand for gold in India, the world's second-largest consumer of the precious metal.

In the overseas market, spot gold jumped more than 1 percent on Wednesday to its highest in nearly nine years, driven by a weaker dollar and safe-haven buying.

The price rise has been dampening retail demand, although lately investment demand is improving, said a Mumbai-based bank dealer with a bullion importing bank.

"But the share of investment demand is very small compared to retail purchases."

India's gold imports in the June quarter plunged 96 percent from a year earlier to 13 tonnes after shipments virtually ground to a halt in April and May.

Local silver prices jumped nearly 6 per cent on Wednesday to 60,782 rupees per kg, the highest in 7.5 years

ADVERTISEMENT
(Published 22 July 2020, 06:20 IST)

Follow us on

ADVERTISEMENT
ADVERTISEMENT