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Gold prices in India touch new high on rupee depreciation

Gold prices in India touched a new record on Thursday after MCX saw a new high of Rs 53,429. It, however, tumbled under pressure on profit booking.

While September future is trading at Rs 53,040 per 10 gram, October future price has come down below Rs 53,000, almost 500 down from the day’s high.

On the other hand, profit-booking in silver is more visible white metal trading at MCX below Rs 63,000 per kg.

Gold and silver are also weak in the international market. Gold has slipped below US $1945 on Comex while silver is seen falling by more than 3%.

Gold prices in the national capital rose by Rs 118 to Rs 53,860 per 10 gram amid rupee depreciation, reports said.

“Spot gold price for 24 carat in Delhi was up Rs 118 on rupee depreciation,” HDFC Securities Senior Analyst (Commodities) Tapan Patel was quoted as saying by PTI.

This comes even as Indian jewellery demand fell 74% in Q2 (April to June) year-on-year to 44 tonnes due to nationwide lockdown, lost festival demand and higher gold price.

The strict lockdown imposed in late March ran through until mid-May, encompassing the all-important gold buying festival of Akshaya Tritiya — one of the most auspicious days for buying gold in India.

“Jewellers are adopting online channels to boost sales. The pandemic has disrupted the bricks and mortar business model of Indian gold retailers and has become a catalyst for retailers to adopt online channels to boost sales,” World Gold Council (WGC) said.