Gold prices on Wednesday appreciated Rs 50 to hit a new high of Rs 38,820 per 10 gram at the bullion market here on account of consistent buying support from jewellers, according to the All India Sarafa Association. Silver also soared by Rs 1,140 to Rs 45,040 per kg on fresh offtake by industrial units and coin makers.
Traders attributed the gain in gold to increase in the domestic spot market demand. However, a weak trend in the international market restricted the gains, they said. Besides, the decline in equity markets also aided the rally in the precious metal as investors moved towards safe-haven assets such as gold, they added.
Gold prices traded weak with international spot gold prices but continue to hover around USD 1,500 an ounce. In New York, spot gold was trading lower at USD 1,499.20 an ounce and silver was down at USD 17.08 an ounce.
"Globally, gold prices are awaiting key events of the week including tonight's (Wednesday's) FOMC minutes, which will set the tone for future rate cut expectations. Gold prices may keep the steady trade ahead of Jackson Hole meeting where US Federal Reserve Chair Jerome Powell's speech will be crucial to anticipate risk pertaining to the markets," said HDFC Securities Senior Analyst (Commodities) Tapan Patel.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose Rs 50 each to Rs 38,820 and Rs 38,650 per 10 gram, respectively Sovereign gold advanced by Rs 200 at 28,800 per eight grams. Meanwhile, silver ready surged Rs 1,140 to 45,040 per kg, while weekly-based delivery gained Rs 210 to Rs 43,632 per kg. Silver coins were in good demand and traded higher by Rs 2,000 to Rs 91,000 for buying and Rs 92,000 for selling of 100 coins.