Gold jumps Rs 450 to breach Rs 79k-mark; silver remains flat

New Delhi: Gold prices advanced Rs 450 to hit another record of Rs 79,350 per 10 grams in the national capital on Thursday on the back of continued buying by jewellers and stockists, according to the All-India Sarafa Association.

The precious metal of 99.9 per cent purity had closed at Rs 78,900 per 10 grams in the previous session on Wednesday.

Rallying for the second straight day, gold of 99.5 per cent climbed Rs 450 to hit another fresh high of Rs 78,950 per 10 grams. It had finished at Rs 78,500 per 10 grams.

However, silver remained flat at Rs 93,500 per kg.

Traders said increased buying by local jewellers to meet festive demand and a rally in the precious metal rates in the global markets mainly lifted gold prices to record high levels.

In futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery reached a lifetime high of Rs 77,019 per 10 grams.

However, silver contracts for December delivery depreciated Rs 181 or 0.2 per cent to Rs 92,002 per kg on the bourse.

In the Asian market hours, Comex gold futures rose 0.43 per cent to USD 2,703 per ounce.

“Gold advanced towards record highs as gains in non-yielding bullion were bolstered by weakness in US bond yields and expected rate cuts by major central banks, with additional safe-haven support from ongoing geopolitical conflicts,” Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services, said.

The European Central Bank looks set to deliver another rate cut later on Thursday, while a drop in inflation was indicated a rate cut next month by the Bank of England.

According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, gold climbed toward a fresh record high on Thursday. Safe haven demand and a positive outlook from the London Bullion Market Association (LBMA) supported the recent rally in bullion prices.

Meanwhile, silver futures slipped 0.15 per cent to USD 31.93 per ounce in the international markets.

“Comex gold prices surged past USD 2,700 per ounce, bolstered by falling US Treasury yields and strong safe-haven demand amid escalating geopolitical tensions.

“Traders will watch key macroeconomic data, including US Retail sales and jobless figures for more insights into the pace of Federal Reserve easing this year,” Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.