Gold surges to record high, nears Rs 37,000; silver soars Rs 1,000

Gold prices on Monday surged Rs 800 to hit an all-time high of Rs 36,970 per 10 gram at the bullion market here amid strong trend overseas as investors preferred the yellow metal due to escalation of trade tensions between the United States and China.

Tracking the movement of gold, silver also soared Rs 1,000 to 43,100 per kg on the back of robust demand from industrial units and coin makers.

Experts said gold reaching its highest level since May 2013 due to the US-China tensions and increased demand by local jewellers were the factors that propelled the yellow metal to record high level in the domestic market.

The US last week announced that it would impose a 10 per cent tariff on Chinese imports worth USD 300 billion starting September 1 and said it could raise duties further if China's President Xi Jinping failed to move more quickly towards a trade deal.

Besides, a weaker rupee also contributed to the rise in the yellow prices as the domestic currency fell by 99 paise to Rs 70.59 vis-a-vis dollar, making imports costlier. The rupee closed at 69.60 on Friday.

"Gold price of Rs 36,970 per 10 gram is the highest in the domestic market till date," said Surendra Jain, vice-president of All India Sarafa Association.

Globally, gold was trading up 1.13 per cent at USD 1,457.30 an ounce, while silver traded 1.51 per cent higher at USD 16.53 an ounce.

"Spot gold jumped to USD 1,459.46 an ounce in the international market, its highest level since May 2013. Weak global economic outlook amid escalating trade war tensions, feeble US dollar and downbeat Asian equities lifted the metal's safe haven appeal for investors," Hareesh V, head (commodity research), Geojit Financial Services.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity surged Rs 800 to Rs 36,970 and Rs 36,800 per 10 gram, respectively.

Gold prices had risen by Rs 540 to Rs 36,170 per 10 gm on Saturday.

Sovereign gold also increased by Rs 100 to Rs 27,600 per eight gram on Monday.

Silver ready rose Rs 1,000 to 43,100 per kg, while weekly-based delivery jumped Rs 1,039 to Rs 42,403 per kg.

Price of silver coins held flat at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.