On MCX, August gold futures jumped 0.74 per cent to Rs 49,159 per 10 gram. Silver July futures also climbed to Rs 51,382 per kilogram. MCX has decided to accept gold and silver bars refined at domestic refineries for deliveries, subject to final regulatory approval.
MCX received the approval of Sebi for the launch of Gold Mini options with Gold Mini (100 grams) bar as underlying, MCX said in a statement.
Gold futures in the US had crossed the $1,800-an ounce mark earlier, but for the first time in 8 years, even the spot price was above $1,800. The international bullion were trading higher for the fourth straight session on expectations of more stimuli from the Federal Reserve to combat the effect for the second wave of Covid-19 cases. Cases in the US have crossed the 3-million mark.
Gold smuggling in India has declined
as a lack of international flights thwarts grey market operators and serves to boost the premium legal importers can charge, industry officials said on Wednesday. Dealers, speaking on condition of anonymity, said the reduced supply of smuggled gold had driven Indian spot prices to a premium this week for the first time this year, adding to bullish sentiment on the gold market.
Indian gold futures hit an all-time high of 49,045 rupees per 10 grams on Wednesday, taking gains to 25% in 2020 so far after they rallied by a quarter in the whole of 2019.