Gold reclaimed the Rs 31,000-mark at the domestic bullion market after fresh offtake from investors and stockists, driven by the black money crackdown in India and a surge in global cues amid Donald Trump's victory in the US presidential election.
Silver reclaimed the Rs 45,000 mark by surging Rs 1,390 a kg on heavy speculative rally.
Globally, gold prices jumped nearly five per cent on the Donald Trump victory in the US, prompting a dive in stocks and the dollar.
In India, standard gold (99.5 purity) spurted by Rs 815 to end at Rs 31,145 per 10g, a level not seen since September 20.
Pure gold (99.9 purity) also climbed by a similar margin to close at Rs 31,295 per 10 grams as compared to Rs 30,480 earlier. Silver (.999 fineness) finished at Rs 45,370 a kg from Rs 43,980 on Tuesday; the current level was not seen since September 12.
London spot gold vaulted to a six-week high of $1,337.40 an ounce, up nearly five per cent.
That apart, despite the government having scrapped legal tender of Rs 500 and Rs 1,000 currency notes, jewellers at the benchmark Zaveri Bazaar here accepted these notes on Wednesday, at a huge premium in the gold price of 10-15 per cent. Deals were also reported at up to 50 per cent premium against high value notes on Wednesday. Noted were also accepted for delivery after two-three days. Many jewellers in the Mumbai suburbs kept their shops open till midnight on Tujesday and sold jewellery with a massive price premium (or discount in cash dealing with Rs 500 and Rs 1,000 notes).
Many consumers had panicked on Tuesday evening immediately after the announcement and rushed to jewellery shop in the vicinity with their cash. Trade sources believe some small retailers ran out of physical stocks. Many jewellers were quoting a gold price at Rs 34,500–35,000 (for 10g) in early Tuesday trade and making backdated bills. Traders were also heard quoting gold prices up to Rs 45,000 per 10g to panic customers.
“Nothing has changed since yesterday. The acceptance of Rs. 500/1,000 currencies continues, which we would deposit in the bank for their replacement with new ones,” said a jeweller in Zaveri Bazaar, on condition of anonymity.
In the official market, gold initially jumped around Rs 1,000 per 10g in pre-opening trade on Wednesday, following a 3.5 per cent increase in global markets on the Trump victory. Bullion, however, lost half its initial gain in afternoon trade in London, to quote at $1,303 an oz after a high of $1,367 an oz in the morning, following a sharp decline in the dollar against major global currencies. The dollar also recovered part of its initial loss.
At Zaveri Bazaar in the afternoon, the premium for official gold was $12, which on closing had moderated to $3 an oz.
Following reports of what jewellers had been up to, Sreedhar G V, chairman of the All India Gems and Jewellery Trade Federation, issued an advisory: “We urge jewellers to exercise restraint, caution and follow government-approved norms for transactions during the next few months.”
'The government's decision to ban old Rs 500 and Rs 1,000 notes will see people having more faith in the precious metal than currency notes. Though, the measure is going to be good for the country,” said Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions.
Silver reclaimed the Rs 45,000 mark by surging Rs 1,390 a kg on heavy speculative rally.
Globally, gold prices jumped nearly five per cent on the Donald Trump victory in the US, prompting a dive in stocks and the dollar.
In India, standard gold (99.5 purity) spurted by Rs 815 to end at Rs 31,145 per 10g, a level not seen since September 20.
Pure gold (99.9 purity) also climbed by a similar margin to close at Rs 31,295 per 10 grams as compared to Rs 30,480 earlier. Silver (.999 fineness) finished at Rs 45,370 a kg from Rs 43,980 on Tuesday; the current level was not seen since September 12.
London spot gold vaulted to a six-week high of $1,337.40 an ounce, up nearly five per cent.
That apart, despite the government having scrapped legal tender of Rs 500 and Rs 1,000 currency notes, jewellers at the benchmark Zaveri Bazaar here accepted these notes on Wednesday, at a huge premium in the gold price of 10-15 per cent. Deals were also reported at up to 50 per cent premium against high value notes on Wednesday. Noted were also accepted for delivery after two-three days. Many jewellers in the Mumbai suburbs kept their shops open till midnight on Tujesday and sold jewellery with a massive price premium (or discount in cash dealing with Rs 500 and Rs 1,000 notes).
Many consumers had panicked on Tuesday evening immediately after the announcement and rushed to jewellery shop in the vicinity with their cash. Trade sources believe some small retailers ran out of physical stocks. Many jewellers were quoting a gold price at Rs 34,500–35,000 (for 10g) in early Tuesday trade and making backdated bills. Traders were also heard quoting gold prices up to Rs 45,000 per 10g to panic customers.
“Nothing has changed since yesterday. The acceptance of Rs. 500/1,000 currencies continues, which we would deposit in the bank for their replacement with new ones,” said a jeweller in Zaveri Bazaar, on condition of anonymity.
In the official market, gold initially jumped around Rs 1,000 per 10g in pre-opening trade on Wednesday, following a 3.5 per cent increase in global markets on the Trump victory. Bullion, however, lost half its initial gain in afternoon trade in London, to quote at $1,303 an oz after a high of $1,367 an oz in the morning, following a sharp decline in the dollar against major global currencies. The dollar also recovered part of its initial loss.
At Zaveri Bazaar in the afternoon, the premium for official gold was $12, which on closing had moderated to $3 an oz.
Following reports of what jewellers had been up to, Sreedhar G V, chairman of the All India Gems and Jewellery Trade Federation, issued an advisory: “We urge jewellers to exercise restraint, caution and follow government-approved norms for transactions during the next few months.”
'The government's decision to ban old Rs 500 and Rs 1,000 notes will see people having more faith in the precious metal than currency notes. Though, the measure is going to be good for the country,” said Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions.
