Gold surges to fresh all-time high of Rs 38,470; silver crosses Rs 44,000-mark

New Delhi: Gold prices on Thursday crossed the Rs 38,000-mark for the first time by soaring Rs 550 to hit a fresh high of Rs 38,470 per 10 gram here, as investors continued to prefer the precious metal as a safe-haven asset amid the ongoing US-China trade tensions and over domestic economic concerns.

Crossing the Rs 44,000-mark, silver surged Rs 630 to hit Rs 44,300 per kg on increased offtake by industrial units and coin makers.

Analysts said international gold prices breaching USD 1,500 an ounce on Wednesday for the first time in six years amid growing US-China trade tensions, mainly prompted investors to rush towards gold.

Besides, concerns over the domestic economic slowdown also lifted the precious metal's appeal.

In its third bi-monthly review of 2019-20, the RBI's Monetary Policy Committee on Wednesday reduced its growth projection for the Indian economy to 6.9 per cent for the current financial year as compared with 7 per cent predicted in June, due to a slowdown in demand and investments.

"Spot gold held near the psychological level of USD 1,500 an ounce in the international market, its highest level since 2013. Policy easing by central banks around the world amid slowing economic outlook and intensifying trade dispute between US and China lifted gold's safe haven demand. A weak dollar and geopolitical tensions in Middle East also aided lower level support to the commodity," said Hareesh V, head (commodity research), Geojit Financial Services.

Meanwhile, globally, spot gold was trading marginally lower USD 1,497.40 an ounce in New York, while silver was trading at USD 17.16 an ounce.

According to the All India Sarafa Association, in the national capital, gold of 99.9 per cent and 99.5 per cent purity surged Rs 550 each to Rs 38,470 per 10 gram and Rs 38,300 per 10 gram, respectively.

The yellow metal had risen Rs 1,113 on Wednesday.

Sovereign gold on Thursday also rose Rs 700 to Rs 28,500 per eight gram.

Silver ready climbed Rs 630 to 44,300 per kg, while weekly-based delivery jumped Rs 745 to Rs 43,730 per kg.

Silver coins were in good demand and traded higher by Rs 1,000 at Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces.