Gold prices in India are surging to new highs. On MCX, October gold futures were up 0.65% to a new high of ₹37,830 amid a rally in global bullion prices. Tracking gold, silver prices also shot up. On MCX, September silver contracts surged 1.5% to ₹43,260. In global markets, gold futures surged above the important level of $1,500 an ounce on the Comex, rising as much as 1.2% to a six-year high of $1,502.30. Gold prices are up 17% this year on Comex, buoyed by safe-haven demand amid US-China trade war, global growth slowdown and dovish monetary policies by major central banks. Investors have piled into into exchange-traded funds.
Silver, gold’s cheaper cousin, also surged. Spot prices in Singapore rallied as much as 2.2% to $16.8082 an ounce, the highest in more than a year.
The Reserve Bank of India, which today cut repo rate by 35 basis points, in its policy statement said that gold prices have risen sharply since the last week of May, propelled by increased safe haven demand amidst rising downside risks to growth and a worsening geo-political situation.