Mumbai, August 26: Gold touched a new high of a little over Rs 40,000 per 10 gm, on Monday. According to All Indian Gems & Jewellery Federation Chairman Bachhraj Bamalwa as quoted in an IANS report said, "This is indeed an unprecedented high, but lower by at least 20 per cent in US Dollar terms. Presently, it is $1,545 on the Comex, lower than $1,920 in September 2011." Global Gold Prices See Biggest One-Day Fall in a Year, India Gold Rates Echo Similar Sentiment.
Escalating trade tensions between the US and China and fears of a global recession has reportedly pushed gold prices to new highs in global markets. On Monday, Asian equity markets were under pressure today as US-China trade tensions sent investors rushing into safe havens such as gold and sovereign bonds. The Indian rupee extended the morning losses and touched the day's low at 72.19 per dollar, down 53 paise from Friday's close.
The gold prices are up by over 20 percent in India so far this year, and this has severely impacted the jewellery demand in the country. Jewellers have also reported a rise in the supply of old gold jewellery as customers are taking advantage of the high prices