Gold prices in the futures market on the MCX climbed closer to Rs. 50000 per 10 gm tracking strength in gold pricing overseas. Today, the futures contract for gold for delivery in August has made an intra-day high of Rs. 49721 per 10 gm.
In the spot market, gold in Ahmedabad is available for Rs. 49173 per 10 gm. Silver also is trading with gains of over 1.5 percent at the time of writing this copy at Rs. 72985, while it logged day's high price of Rs. 73,147 per kg.
Gold prices in the international market
As the dollar index has again headed lower to 89.87, the gold prices are seeing a surge. Furthermore, inflationary fears world over are providing a boost to the dollar's appeal as an inflationary hedge.
In the spot market, gold price at 09:05 NY time, quoted higher at $1908 per ounce. This is the first major surge in gold price in the last five months time.
Bullish stance remains for both gold and silver
For the near to medium term, outlook for both gold and silver is extremely bullish. "Gold prices traded near a five-month high scaled last week, supported by a softer dollar and growing inflationary pressures, while investors awaited key U.S. data scheduled this week, that will provide a clearer picture on the overall economic growth. Last week, we witnessed U.S. consumer prices surging in April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target and posting its largest annual gain since 1992. Gold is considered as an inflation hedge, although Fed Governor, till now has underplayed the rising inflationary concerns", said Navneet Damani, VP - Commodities Research, Motilal Oswal Financial Services.