Gold price eases after soaring record high of Rs 40,000 mark amid recession fears

Amid growing fears of global economic slowdown, Gold prices jumped to breach the record Rs 40,000 per 10 gram level for the first time in the bullion market on Thursday. Rising on strong demand from investors, the yellow metal maintained its record-breaking run for the second day on Friday, as it was trading at Rs 39,200 per 10 gram, while on Wednesday, it had soared by Rs 300 to close at Rs 39,970 per 10 grams for 24 carat. 

In Delhi today, the yellow metal is trading at Rs 38,900 per 10 gram for 24 carat, while 22 carat is being sold at Rs 37,700 per 10 gram, according to goodreturns.in. Notably, the gold price in Delhi has witnessed momentum since the start of the year, as equity markets took a beating in the beginning of the year, pushing investors to invest in safe haven asset like gold.

On Friday, Gold prices eased as equity markets and the dollar firmed, but fears of a global economic slowdown and uncertainty about the US-China trade war kept the safe-haven metal on track for its fourth straight monthly rise. Spot gold was down 0.1% at $1,526.14 per ounce by 1137 GMT but has gained nearly 8% so far this month, while US gold futures were down 0.2% at $1,535.20 an ounce, according to a Reuters report.

Sovereign gold soared Rs 400 to Rs 30,200 per eight grams. Silver ready rose Rs 200 to Rs 49,050 per kg, while weekly-based delivery climbed Rs 814 to to Rs 47,230 per kg, said the report, adding that silver coins were in good demand and traded higher by Rs 3,000 at Rs 1,01,000 for buying and Rs 1,02,000 for selling of 100 coins. 

Meanwhile, cash strapped Pakistan on Thurday witnessed a record high in yellow metal, which reached a record high of Rs 90,000 per tola (just above 10 gram) in several of its cities, including Karachi, Lahore, Islamabad, Rawalpindi, Peshawar, Faisalabad and Quetta.

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According to the Karachi Sarafa Association, the 24-karat gold jumped by Rs 900 to trade at Rs 90,000 per tola against Wednesday`s closing price of Rs 89,100 per tola. The All Pakistan Sarafa Association reportedly stated that the trade war between China and the United States of America has impacted the world economy in a big way.