NEW DELHI, Sep 23: Gold prices rallied Rs 600 to Rs 76,950 per 10 grams in the national capital on Monday amid a rise in the precious metal rates in international markets.
The yellow metal of 99.9 per cent purity had closed at Rs 76,350 per 10 grams on Friday.
In addition, gold of 99.5 per cent purity also jumped Rs 600 to Rs 76,600 per 10 gram from Rs 76,000 in the previous close.
Traders attributed the rise in gold prices in the local markets to an increased demand by jewellers and retailers.
Snapping a seven-day winning streak in the local market, silver plunged Rs 1,000 to Rs 90,000 per kilogram due to subdued offtake from industrial units and coin makers, according to the All India Sarafa Association.
It had closed at Rs 91,000 per kg in the previous session.
On the other hand, gold contracts for October delivery climbed Rs 184, or 0.25 per cent, to Rs 74,224 per 10 gram in the futures trade on the Multi Commodity Exchange (MCX).
Silver contracts for December delivery declined Rs 1,035, or 1.15 per cent, to Rs 89,100 per kg on the exchange.
“Gold prices have surged 27 per cent this year, reaching lifetime highs, fuelled by a weakening US dollar and falling Treasury yields, following the Fed’s 50 basis points rate cut,” Abans Holdings Chief Executive Officer Chintan Mehta said.
Heightened geopolitical tensions, particularly the risk of full-scale war in the Middle East, have further boosted demand for the safe-haven asset as Israel continues its strikes on Gaza, Mehta added.
In the global markets, Comex gold rose 0.04 per cent to USD 2,647.30 per ounce.
Gold rose to a new record high on Monday, aided by a steady US dollar and persistent demand in physically backed exchange-traded funds, as more buyers attempted to hedge against economic uncertainty and geopolitical risks,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
According to Maneesh Sharma, AVP, Commodities & Currencies, Anand Rathi Shares and Stock Brokers, gold prices could look ahead to key macro data from the US this week, including S&P global PMIs and Core PCE Index.
Traders are also awaiting speeches from key Fed officials, including its Chair Jerome Powell, that could be crucial to determine further direction to bullion prices, Sharma added.
However, silver quoted lower at USD 30.96 per ounce in the Asian trading hours.
“The outlook of the precious metal remains constructive as traders gun for USD 2,700 in near term, though weak Chinese demand remains a concern.
“It is expected to to find good support into the dips as concerns about the US job market and Chinese economy linger,” Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said. (PTI)
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