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Gold price rises to Rs 40,851 on weaker rupee, geo-political tensions

Gold prices on Wednesday climbed to Rs 40,851 per 10 gram following rise of geo-political uncertainty and weaker rupee.

According to the prices given by the Indian Bullion and Jewellers Association, on January 8 the rate without GST for gold (purity-999) is Rs 40,851 while for gold with purity-995 is Rs 40,687. Silver prices, however, saw a drop to Rs 47,795 per kg from Rs 48,395 per kg.

Gold prices according to purity levels are as follows:

999- Rs 40,851/-

995 - Rs 40,687/-

916 - Rs 37,420/-

750 - Rs 30,638/-

585 - Rs 23,898/-

As per the market data, the yellow metal prices had risen by 24 per cent in 2019, while it had inched up by only 0.9 per cent in 2018. In the domestic market, gold prices touched record highs this week, breaching the Rs 42,000 mark per 10 gram. In the international market too, prices are hovering around a seven-year high.

Bullion has gained momentum in the international market due to deepening military tension between the US and Iran. In the international market, the price of gold crossed $1,600 an ounce on Wednesday which is a seven-year high. On Wednesday, gold on the international futures market COMEX was trading at $1,591.35 an ounce with a gain of $17.05 or 1.08 per cent in the February contract, while gold traded up on Comex to $1,612.95 per ounce during the previous trading, which is the highest after February 2013. On February 19, 2013 the gold rose to $1,617 an ounce.

The rise in gold prices is seen as a safe haven investment in the wake of geo-political tension in the Middle East. On Wednesday, 10 rockets were fired at the Iraq-based Al Assad airbase, which has a large number of US troops, according to the Efe news. The attack comes after Iran's commander General Qasem Suleimani died on January 3 in a US drone strike, which is seen as a retaliation by Iran.

(Inputs from Agencies)

Also Read: Gold prices touches lifetime high as investors flock to safe havens, after Iran launches missile strikes at US bases