Gold tops $2,000, India takes cues as price hits record of Rs 54,480 ex GST

Mumbai: Gold futures October contract hit a record high of Rs 54,480 per 10 gm , before dipping a tad to Rs 54392 late night India time. The rise reflected the jump in overseas gold to $2002.5 an ounce. The August contract, which expires tomorrow, traded at.a premium of Rs 54,560, indicating that sellers could have deferred delivery to October, Amit Modak, CEO, PNG & Sons said.

Modak added that demand in his high street store in Mumbai registered 60% of the business at this time of year. "Customers are buying 22 carat coins as investment on expectations of prices rising further amid economic uncertainty induced by the Pandemic," he said.

Shekhar Bhandari, president, global transaction banking, Kotak Mahindra Bank, added that gold in the spot market in India was trading at a premium of 1.5-3 dollars an ounce to the London rate owing to rising investment demand .