Gold prices surge close to Rs 50,000 per 10 gram on weak dollar, silver climbs Rs 696 a kg

Gold prices rose Rs 144 to Rs 49,995 per 10 gram in the Mumbai retail market on a softer dollar and positive global cues. The precious metal gained on optimism surrounding the US stimulus but the upside was capped by strength in the rupee.

The rate of 10 gram 22-carat gold in Mumbai was Rs 45,795 plus 3 percent GST, while 24-carat 10 gram was Rs 49,995 plus GST. The 18-carat gold quoted at Rs 37,496 plus GST in the retail market.

US Labour Department reported that claims for state unemployment benefits dropped to 89,000 to a seasonally adjusted 803,000 for the week ended December 19.

The US dollar traded weaker at 90.16, down 0.19 percent in the evening session against a basket of currencies. The US dollar fell as risk appetite rose on expectations of an imminent Brexit trade deal between the UK and the EU.

Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund were unchanged at 1,167.52 tonnes.

-Published on Dec 25th, 2020