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Mumbai: Gold in rupees hit a record high on Monday to trade just Rs 251 below the psychological Rs 50,000 per 10 gm mark on Monday. The Indian rate for 24 carat rose to a record Rs 49,749 per 10 gm, including 3% GST, as international gold surged to a fresh one-month high of $1,753 an ounce on safe haven demand amid the biggest one-day spike in Covid cases globally and fears of extended global slowdown due to the pandemic.

Demand in India, the world’s second-largest gold consumer after China, remains tepid due to lower disposable income and virus-related restrictions.

“Demand is around 35-40% of normal at this time of year,” said Amit Modak, CEO of PNG & Sons. “The rise in rate, restrictions on shop timings due to the pandemic and lower disposable incomes, especially among low-ticket size buyers have crimped demand.”

Even in Zaveri Bazaar, India’s bullion and jewellery hub, demand remains weak since the re-opening on June 5 after over two months of a nationwide lockdown to prevent the virus spread. However, marriage-based buying has commenced with most weddings deferred till September and beyond.



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