Market News - Silver opens above Rs 50,000 a kg in Mumbai, gold at Rs 39,000-plus

Standard gold opened at Rs 39,091 for 10 grams, trading for the first time above Rs 39,000. It closed at Rs 39,031. Including a three percent goods and services tax, the price is above Rs 40,000.

After six years, silver is trading above Rs 50,000 a kilo in the physical market here. Its global prices at $19.4 an ounce is a three-year high. The global high comes amidst the uncertainties of Brexit, a trade war and slowing growth, with traders increasing their silver bets. At Zaveri Bazar, the spot market price opened at Rs 50,125 a kilo and closed a little lower at Rs 49,950 — still up four percent from Tuesday’s close.

Gold prices fell by Rs 372 to Rs 39,278 per 10 gram in the national capital on Friday due to weak demand and strong rupee, according to HDFC Securities. In tandem with gold prices, silver also dropped by Rs 1,273 to Rs 49,187 per kilogram here. “Gold declined on weak investment demand and stronger rupee. The spot rupee gained by 21 paise against the dollar during the day,” Tapan Patel, senior analyst (commodities), HDFC Securities said. In the international market, gold prices fell to USD 1,510 per ounce in New York, while silver also dropped to USD 18.30 an ounce.

Price of the next tranche of the Sovereign Gold Bond issue opening on September 9 has been fixed at Rs 3,890 per gram, the Reserve Bank said on Friday.

The Sovereign Gold Bond Scheme 2019-20 - Series IV will be opened for subscription from September 9 to 13, 2019. Further, the government has decided to offer a discount of Rs 50 per gram for those investors applying online and making payment for the purchase of the bond through digital mode.

"For such investors, the issue price of Gold Bond will be Rs 3,840 per gram of gold," the RBI said.

In Delhi, gold prices for 24 karats had closed at Rs 39,650 per 10 gram on Thursday, while silver had ended at Rs 50,460 per kilogram. The Indian rupee appreciated by 17 paise to 71.67 against the US dollar in early trade on Friday as gains in the domestic equity market and resumption of US-China trade talks in October strengthened investor sentiments.

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