Gold prices rise amid slump in equity markets worldwide, crosses $2,460/ounce; check rates in Indian cities

International gold prices soared to cross $2,460 per ounce on Friday, August 2, in the backdrop of equity markets worldwide slipping on fears of recession in the United States.

Spot gold was trading at $2,466.2 an ounce at 0700 hours GMT, up 0.8% as against the last closing price.

The US gold futures recorded a sharper surge, with the contracts for September delivery trading 1.1% higher at $2,508.4 an ounce on the Commodity Exchange Center (COMEX).

On India's Multi Commodity Exchange (MCX), gold futures for August delivery were priced at ₹70,937 per 10 gram at 11:49 am (IST), up 1.07% as against the previous session's close.

The climb in gold's value comes a day after the data related to the manufacturing activity in the US was released. The manufacturing sector's PMI declined to 46.8% in July, from 48.5% in June. The slump was sharper than expected, and marked the fourth consecutive month of decline.

Subsequently, the US markets nosedived, with S&P 500 settling 1.37% lower at 5,446.68 and NASDAQ Composite closing 2.3% lower at 17,194.14.

The Indian frontline equity indices were also in the red, with NIFTY50 down 0.97% at 24,769.25 at 12:39 pm. SENSEX was down 0.93% at 81,103.88.

Check gold rates in Indian cities

The retail prices, which are largely factored by the global rates prevailing on the preceding date, were edging lower in some Indian cities. As per the rates tracked by Upstox, the per 10-gram of 24 karat gold was trading at ₹69,985 in Mumbai, down 0.56% as against the previous day’s close.

In New Delhi, the price increased by 0.41% to ₹70,260, whereas the rate was down 0.17% at ₹70,809 in Kolkata.

In Chennai, gold shed 0.37% to trade at ₹70,191, whereas Bengaluru witnessed a decline of 0.17% to ₹70,740.

According to analysts, the global demand for gold is expected to remain strong in the medium-to-long term. The price could peak to $3,000 an ounce in the international market, as per a forecast released by Citi Research in April.