Gold prices in India surged to a fresh all-time high for the sixth straight session on Monday supported by gains in global markets and losses in equity markets over the escalating US-China trade war. The depreciating Indian rupee against the US dollar has also boosted gold rates. Global gold prices also jumped nearly 1 percent to trade at the highest level since April 2013. In India, gold futures rose 1 percent to Rs 39,196 per 10 grams in early trade. So far this year, gold prices rose nearly 25 percent in 2019. Comex gold rates hit their six-year highs.

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Globally, spot gold rate jumped 0.9 percent to $1,539.70 per ounce as of 9.44 AM (IST), having earlier touched $1,554.56 an ounce, its highest since April 2013. US gold futures were up 0.8 percent at $1,549.50 an ounce.

Silver prices in India have also risen to a three-year high. Silver futures were up 1 percent at Rs 45,058 per kg, after rising to 45,148 rupees earlier in the day, the highest since October 3, 2016.

Indian benchmark indices BSE Sensex and NSE’s Nifty 50 surged nearly 2 percent in the opening trade but soon erased all the gains, dragged by losses in Asian markets. Global markets fell after US President Donald Trump announced additional tariffs on Chinese goods.

The Indian rupee fell to an eleven-month low today again the US dollar. The local currencies fell to 72.2538 per dollar, down 58 paise from its previous close of 71.6650.

Pritam Kumar Patnaik, head commodities at Reliance Commodities, said the upward trend in gold and silver prices is likely to continue. While the gold prices are likely to move towards Rs 39,900 to Rs 40,000 levels on the MCX, silver rates expected to move higher towards 48,000 levels in coming days.

"The US-China trade war with new tariff announcement has pushed gold and silver prices to a new six-year high as investors rushed for safe-haven assets. Depreciating Indian rupee also helped the rise in prices,” he said.

Patnaik said Rs 38,800 and Rs 39,000 act as a strong crucial support level for gold, while, for silver, 45,900 and 46,200 will serve as support levels on the downside.

"What we are seeing right now is a bit of profit-taking coming in, but that doesn't change the overall sentiment for gold," Reuters quoted OANDA analyst Jeffrey Halley as saying. Spot gold may peak in a range of $1,546-$1,569 per ounce, said Reuters technical analyst Wang Tao.

(With inputs from Reuters)

First Published:Aug 26, 2019 12:11 PM IST