In the domestic market, gold prices surged close to record high levels today taking cues from the global markets where the precious yellow metal continued its surge for the third-straight session after Jerome Powell raised hopes of interest rate cut despite the strong US job numbers for the month of June.
US Fed Chair Jerome Powell comments on Wednesday highlighting "broad" global weakness, which is impacting the US economic outlook negatively, spurted the case for interest rate cut by the US central bank later in the month. And amid it, the US dollar was dragged lower from its 3-week high reached earlier.
On MCX, gold futures for August delivery rose to Rs. 35,096 per 10 gm, up 0.7%. After the Budget 2019 announcement on July 5 that increased import duty on gold to 12.5% from 10% earlier, gold futures touched a record-high of Rs. 35,100 per 10 gm. On similar lines, silver also increased in price to Rs. 38,464/ kg on the MCX.
Spot gold prices in Singapore are trading close to a 6-year high level at $1,427.23 per ounce. Gold scaled to $1,439.21, its highest price since 2013 on June.
This year the bullion has climbed on the back of uncertain geo-political climate and global trade rift. Also, increased demand for the metal from central banks world over has been supportive of its price.