In line with global trend, price of gold in New Delhi jumped by Rs 930 on Thursday to close at an all- time high of Rs 35,800 per 10 grams.
Internationally, spot price of gold is currently pegged at $1,420.80 an ounce (approximately Rs 34,019 per 10 grams). Gold prices have been moving up ever since concerns over US-China trade war have come to the fore.
While the prices have been on the rise over the last couple of months, it jumped sharply on Thursday following US Federal Reserve Chairman Jerome Powell’s testimony to the US Congress where he hinted of cutting rates in its forthcoming Federal Open Market Committee (FOMC) meeting scheduled for July 30-31. In India, the gold prices also witnessed a spurt following the government’s Budget announcement to hike Customs duty on gold import from existing 10 per cent to 12.5 per cent.
While trade war concerns and US Fed’s expected decision to cut rates alongside a cautious stance on US economy prompted investors to move towards safe-haven assets like the yellow metal, in India the prices have adjusted for the Customs duty hike. There is a sense in the market that if the global growth continues to remain under pressure and trade war concerns keep lingering, gold price may inch up further.