New Delhi, Sep 16 (PTI) Gold prices snapped a three-session losing streak on Wednesday, rising Rs 1,200 to Rs 1.55 lakh per 10 grams in the national capital as bargain buying by traders and easing crude oil prices boosted sentiment towards bullion.
The yellow metal of 99.9 per cent purity appreciated by Rs 1,200 to Rs 1,55,600 per 10 grams (inclusive of all taxes) from Tuesday’s closing level of Rs 1,54,400 per 10 grams, according to local traders.
Silver also bounced back after holding steady for two straight sessions, surging Rs 7,400 to Rs 2.42 lakh per kilogram (inclusive of all taxes) against the previous close of Rs 2,34,600 per kg.
Gold prices edged higher on Wednesday as traders resorted to bargain buying after three consecutive sessions of losses, Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
A pullback in crude oil prices improved sentiment towards bullion, while a softer tone in US Treasury yields ahead of the US Federal Reserve’s policy decision provided additional support to precious metals, Gandhi added.
In global markets, spot gold gained USD 53.96, or 1.3 per cent, to USD 4,348.10 per ounce, while silver rose 1.5 per cent to USD 64.61 an ounce.
Spot gold rose over 1 per cent to trade around USD 4,350 per ounce during the session but remained largely confined to either side of the USD 4,300 mark as investors awaited the Federal Open Market Committee’s monetary policy decision later in the day, Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said.
Gold’s resilience despite a sharp rise in oil prices on Tuesday reflected uncertainty over the Fed’s stance going forward, Singh said.
“Investors are interested in knowing whether this rate hike could be one-off hike or could become a series of hike,” he added.
Markets are expecting a 25 basis points rate hike by the Federal Reserve in this meeting.
