Gold prices have been rallying in the international, as well as, Indian markets this week. Marking a third consecutive day of hike, gold was priced at Rs 32,635 per 10 grams of 24 carats in New Delhi, the highest since 29 November 2012. Rates of the yellow metal across Indian cities rose due to an increase in the international market prices and rise in local demand.
Global rates were impacted by the bloodbath in global stock markets, following which, investors sought refuge in the safe haven metal. A rout in tech stocks on Wednesday caused the biggest daily decline on Wall Street since 2011, and this was followed by a slump in the Asian stock indices, destroying hundreds of billions of dollars in the global markets. In India, the BSE Sensex fell close to 350 points in trade today.
In addition, concerns over Italy's budget woes, US-China trade spat, Brexit uncertainties and US-Saudi tensions benefited the low-risk, low yielding bullion. US spot gold was trading 0.3 percent higher at $1,237.04 an ounce.
Further, fall in the value of rupee, which was at $73.24/dollar today as against Wednesday's $73.16 a dollar, increased the import price of the metal. As India is highly dependent on imports for its domestic supply of gold, any change in currency exchange valuation will impact the gold rates as well.
Silver, on the other hand, fell further by Rs 130 to Rs 39,600 per kg, mainly due to a fall in demand from industrial units.