New Delhi: Gold prices surged by Rs 700 to Rs 79,700 per 10 grams in the national capital on Tuesday, driven by increased demand from jewellers and retailers, along with a depreciation of the rupee, according to the All-India Sarafa Association.
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The precious metal had closed at Rs 79,000 per 10 grams on Monday.
Also Read: Today’s Gold and Silver Prices in Different Cities
Gold Price Movement
- Gold (99.5% purity) rose by Rs 700 to reach Rs 79,300 per 10 grams, compared to Rs 78,600 on Monday.
- Factors Influencing Prices: The increase in gold prices was attributed to strong trends in international markets and growing domestic demand for bullion.
- Rupee Depreciation: The Indian Rupee fell by 5 paise to 85.73 (provisional) against the US dollar, which further contributed to higher gold prices in the domestic market.
Silver Prices Soar
- Silver also experienced a sharp rise, increasing by Rs 1,300 to reach a three-week high of Rs 92,000 per kg. In comparison, the metal had closed at Rs 90,700 per kg in the previous session.
Futures Market Performance
- In the futures trade on the MCX:
- Gold contracts for February delivery gained Rs 122, or 0.16%, reaching Rs 77,280 per 10 grams.
- Silver contracts for March delivery rose by Rs 551, or 0.61%, to settle at Rs 91,105 per kg.
Global Market Trends
- Comex Gold Futures rose by 0.28%, trading at USD 2,654.90 per ounce in international markets.
- Comex Silver Futures increased by 0.73%, trading at USD 30.81 per ounce in Asian trading hours.
Market Outlook
- Uncertainty in US Markets: Analysts are focusing on upcoming economic data, including the US ISM Services PMI and JOLTS job openings data, as well as reports on non-farm employment and unemployment claims.
- Federal Reserve’s Policy: Investors are also awaiting statements from Federal Open Market Committee (FOMC) members to understand the Fed’s stance on future interest rate cuts, which could influence precious metal prices.
Gold Price Outlook
- Saumil Gandhi, Senior Analyst at HDFC Securities, mentioned that gold is hovering around the USD 2,635 level, supported by haven flows due to uncertainty around US President Trump’s policies.
- Renisha Chainani, Head of Research at Augmont, emphasized that this week is crucial for gold traders, as key economic data will impact market sentiments. If the US jobs report falls short of expectations, it could signal that the Federal Reserve may pause its interest rate-cutting cycle, which could negatively affect gold prices.