Kolkata: Gold prices are rising again and ballooning US government debt seems to be pushing it up. On Friday, May 23, gold opened at Rs 95,815 which is the highest price this week. Moreover, it is a good Rs 2,196 higher than the corresponding price recorded on the morning of May 19, according to data from IBJA (India Bullion and Jewellers Association).
This is the price of Gold 999 variety. The yellow metal’s demand rose following a rise in concerns over US debt level stress. It was especially acute since US ratings MNC Moody’s downgraded US credit rating due to the unsustainable debt levels. The agency said there was no action on managing it effectively. The development prompted traders to dump US treasuries and the dollar in favour of gold, a traditional safe haven asset.
Gold price in the past few days
According to data from IBJA (India Bullion and Jewellers Association), the opening and closing rates of Gold 999 is as follows. One should note that Gold 999 is the purest variety and is popularly referred to as 24 carat gold.
May 23: Rs 95,815 (opening)
May 22: Rs 95,583 (opening), Rs 95,516 (closing)
May 21: Rs 95,452 (opening), Rs 95,309 (closing)
May 20: Rs 93,058 (opening), Rs 93,807 (closing)
May 19: Rs 93,619 (opening), Rs 93,785 (closing)
Gold futures market
According to reports, on May 23 gold prices rose by Rs 527 to reach Rs 96,063/10 grams in the futures market. On MCX, or Multi Commodity Exchange, gold contracts for June delivery traded higher by 0.55% at Rs 96,063/10 grams. The business turnover was of 9,786 lots. Analysts pointed out that fresh positions built up by participants paved the way for the price rise. In New York gold futures rose 1.07% to touch $3,329.65 per ounce.
Incidentally, India is teh second biggets consumer of gold after China and imports a lot of the requirment. Gold is the second bieest drain on India’s forex after crude oil.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, any form of alternative investment instruments and crypto assets.)
Gold is a safe haven asset. The price of gold rises whenever there is uncertainty in the economic firmament. The latest concern is over unsustainable levels of US government debt. See by how much gold prices have risen since May 19. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
