New Delhi, Jul 22 (PTI) Gold prices jumped by Rs 1,900 to a two-week high of Rs 1.49 lakh per 10 grams in the national capital on Wednesday, tracking robust physical demand and firm trends in global markets.
The yellow metal of 99.9 per cent purity appreciated by Rs 1,900 to Rs 1,49,600 per 10 grams (inclusive of all taxes), according to the All India Sarafa Association.
It had settled at Rs 1,47,700 per 10 grams on Tuesday.
On July 7, gold quoted Rs 1,49,250 per 10 grams in the local market.
Silver rebounded after six consecutive sessions of losses, rising Rs 8,500 to Rs 2,30,000 per kilogram (inclusive of all taxes). The white metal had closed at Rs 2,21,500 per kg in the preceding session.
Traders said gold extended its winning run for the third straight session, supported by firm overseas prices, renewed physical demand and value buying after last week’s correction.
“Gold advanced on Wednesday, tracking positive cues from global markets, with prices rallying to a two-week high, following a recovery in physical demand,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
The rally was also supported by value buying and renewed inflows into exchange-traded funds (ETFs), reflecting improving investor sentiment following the recent decline, he added.
Globally, spot gold gained USD 47.43, or 1.16 per cent, to trade at USD 4,125.24 per ounce and silver rose nearly 1 per cent to USD 59.32 per ounce.
“Spot gold hit a two-week high of USD 4,140 per ounce in intraday trade while silver edged closer to USD 60, with both metals rallying despite continued escalation in West Asia and crude oil holding at five-week highs,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
According to Chainwala, US Secretary of State Marco Rubio has tempered expectations of a diplomatic breakthrough, saying Washington remains willing to negotiate, but Tehran is not serious about talks, leaving investors in a wait-and-watch mode.
She said monetary policy expectations continue to dominate bullion trading, with traders closely tracking next week’s Federal Reserve Open Market Committee meeting.
Minutes of the June meeting showed US policymakers narrowly leaning towards another interest-rate increase, with nine officials favouring a hike and eight preferring to hold, suggesting gains in precious metals may remain capped until there is greater policy clarity.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said bullion was supported by three key factors: expectations of US-Iran peace talks resuming sooner rather later, renewed demand for precious metals after the Trump Administration began imposing tariffs again, and gold’s ability to sustain above the USD 4,000-an-ounce level.
