NEW DELHI, Dec 11: Gold prices rallied to reclaim the Rs 80,000-level in the national capital on Wednesday driven by increased buying from jewellers and stockists, amid a strong global trend, as per the All India Sarafa Association.
The precious metal of 99.9 per cent purity jumped Rs 620 to touch nearly a three-week high of Rs 80,400 per 10 grams. It settled at Rs 79,780 per 10 grams on Tuesday.
Extending the rally for the third straight day, silver surged Rs 1,450 to hit a one-month high of Rs 96,300 per kg. The white metal closed at Rs 94,850 per kg on Tuesday.
Price of gold of 99.5 per cent purity climbed Rs 620 to Rs 80,000 per 10 grams on Wednesday. The yellow metal finished at Rs 79,380 per 10 grams in the previous trading session.
Traders attributed the rise to increased demand from jewellers and retailers in local markets.
In futures trade on the Multi Commodity Exchange (MCX), gold contracts for February delivery rose Rs 112, or 0.14 per cent, to trade at Rs 78,450 per 10 grams.
During the day, the yellow metal bounced Rs 640, or 0.82 per cent, to hit a high of Rs 78,978 per 10 grams.
“Gold traded with minor gains as Comex prices once again approached the USD 2,700-mark, recovering strongly from the USD 2,600 support range seen a week ago.
“In MCX, gold is expected to trade within a range of Rs 77,400-79,250, with volatility likely to remain elevated ahead of the data release,” Jateen Trivedi, VP Research Analyst — Commodity and Currency at LKP Securities, said.
Silver, however, declined Rs 396, or 0.41 per cent, to Rs 95,129 per kg on Wednesday.
Comex gold futures rose USD 10.20 per ounce, or 0.38 per cent, to USD 2,728.60 per ounce in the international markets.
“Gold prices jumped breaching USD 2,700 once again, extending recent gains as heightened geopolitical tensions in Syria, firm dollar index and rising rate cut expectations is supporting prices,” Manav Modi, Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said.
However, silver quoted 0.33 per cent lower in the Asian market hours.
“The US Federal Reserve is likely to cut interest rates for the third time in next week’s monetary policy meeting,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Lower interest rates are favourable for non-yielding metals like gold.
“Gold continues to shine as a preferred safe-haven asset amid escalating geopolitical tensions and rising uncertainty,” Abans Holding Chief Executive Officer Chintan Mehta said.
Markets will also keep a close watch on Consumer Price Index (CPI) and unemployment claims data on Thursday.
The data releases, in turn, will play a key role in influencing the US dollar price dynamics and determining the future trajectory for the bullion prices ahead of the highly-anticipated two-day Federal Open Market Committee’s (FOMC) meeting next week. (PTI)
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