New Delhi: Gold prices in the international market on Friday (July 24) reached all-time high levels seen nine years ago in the wake of the US-China spat amid fears over the economic hit from the coronavirus pandemic.
The yellow metal witnessed its biggest weekly gain in more than three months as it held firm near a nine-year high, benefiting from a weak dollar and inflation expectations due to stimulus for virus-battered economies, said a Reuters report.
Spot gold was up 0.3% at $1,893.21 per ounce by 0739 GMT, having hit its highest since September 2011 at $1,897.16 on Thursday. Prices have risen more than 4% this week, putting gold on course for its longest winning streak since late 2011.
Gold tends to benefit from widespread stimulus measures from central banks as it is perceived as a hedge against inflation and currency debasement.
Rising Sino-US tensions also prompted investors to seek safety in bullion. China ordered the United States to shut its Chengdu consulate in retaliation for the closure of its consulate in Texas.
Gold prices in Delhi, however, continued to hit new highs on Friday, rising by Rs 475 to Rs 51,946 per 10 gram on the back of gains in the international prices of the precious metal and rupee depreciation.
In the previous trade, it had closed at Rs 51,471 per 10 gram.
In Mumbai, standard gold today closed 0.8 percent up to reach another high of Rs 50,919 per 10 grams. Silver also closed 1.5 percent lower at Rs 59,885 a kilo.
non-yielding gold has surged 24% this year, underpinned by low-interest rates and stimulus from central banks to revive their economies, which benefits bullion since it`s a perceived hedge against inflation and currency debasement.
Further helping gold, the dollar index held near a two-year low and was on track for its biggest weekly decline since early June.
Silver, however, declined by Rs 109 to Rs 62,262 per kg, from Rs 62,371 per kg on Thursday. Silver was en route to its best week since 1987.
(With Agency Inputs)