Mad rush for bullion: Gold hits Rs 34,000, sets new record in pre-opening trade

Gold hits Rs 34,000 - 34,500 per 10g in a mad rush of buyers to tender Rs 500 and Rs 1000 notes Tuesday night,

As PM Modi banned the Rs 500, Rs 1000 notes yesterday, the Gold price today hit the highest ever in pre-opening trade today.  The consumers lined up at the jewellery stored to get rid of their cash.

Donald Trump’s lead in the 45^th US Presidential election is another major reason for this rise as it pushed the dollar down against major global currencies and helping gold move up.

In London, gold was up by around 3 per cent ($42.45) to trade at $1,316.90 an oz. The jump in gold price was one of the highest daily jump in the last several years. Silver, however, was resilient.

The white precious metal recorded a 2 per cent rise from its previous close to trade at $18.670 an oz.
 
In the unofficial market gold was quoted at Rs 34,000 – 34,500 per 10 g. It is a 14 per cent rise which is the sharpest daily jump in the recent memory.
 
“Many shops in remote suburban areas remained opened till mid-night on huge buyers’ rush. Amid consumers’ demand, gold was trading 25-30 per cent higher till midnight,” said Ashok Minawala, Director, All India Gems and Jewellery Trade Federation (GJF).
 
Informed sources said that many jewellery retailers would accept Rs 500 and Rs 1,000 notes for purchase of jewellery for a few hours today and show it as cash sales in the previous day’s record. But, such trades would be possible only for some time.

 
Meanwhile, gold future for delivery in December was trading with a gain of 3.43 per cent or Rs 1,025 at Rs 30,927 per 10g. Silver for delivery in December also gained 1.71 per cent or Rs 741 to trade at Rs 44,200 a kg in early Wednesday trade.
 
“In the physical market, however, gold price might also be quoting high because of Donald Trump’s moving towards victory in the US Presidential election,” said Surendra Mehta, Secretary, India Bullion and Jewellers Association (IBJA).