MUMBAI (Commodity Online) : Gold prices in India, world’s largest consumer of the yellow metal, continued their northern journey on Monday, tracking global cues.
A sovereign of gold (8 grams) cost Rs 17,400 in afternoon trade here while price of a gram of gold hit Rs 2175, up by Rs 200.
In the Futures market too, gold climbed as the most-active gold for August delivery on the Multi Commodity Exchange was trading higher by 0.97 percent at 23,327 rupees per 10 grams in late trade.
Earlier, the prices hitting as high as Rs 23,339 per ten gram. Weaker rupee also aided sentiment as the local unit plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Globally, the yellow metal remained on a higher note as as investors piled into bullion over fears of a possible U.S. debt default as the debt ceiling talks in Washington stalled.
With the Aug. 2 deadline for a resolution fast approaching, the world’s largest economy is facing an unprecedented debt default. If this happens, investors could dump the dollar and U.S. Treasuries.
A weak dollar and Asian stocks also helped the precious metal.
Gold for immediate delivery hit a new peak at $1,622.49 an ounce and was up 1.2 per cent at $1,619.10 an ounce at 1.00 p.m London time while US gold futures for August delivery were up $16.90 an ounce at $1,618.40, off a high of $1,624.30.
Meanwhile, the gold: silver ratio eased back below 40 on Monday as silver outperformed, approaching last week’s two-month low.
