New Delhi, Jul 20 (PTI) Gold prices rebounded by Rs 1,400 to hover around Rs 1.47 lakh per 10 grams in the national capital on Monday amid firm global trends.
The yellow metal of 99.9 per cent purity climbed Rs 1,400 to Rs 1,46,900 per 10 grams (inclusive of all taxes) from Friday’s closing level of Rs 1,45,500 per 10 grams, according to the All India Sarafa Association.
However, silver depreciated by Rs 1,000 to Rs 2,21,500 per kilogram (inclusive of all taxes) , extending losses for the sixth consecutive session. It had settled at Rs 2,22,500 per kg in the previous session.
The white metal has declined by Rs 15,500, or 6.5 per cent, cumulatively since July 10.
Traders said value buying emerged in gold after last week’s sharp sell-off. However, silver continued to face liquidation, with investors weighing geopolitical risks against expectations that the Federal Reserve could keep interest rates elevated.
“Gold edged higher on Monday, tracking positive cues from international markets, driven by bargain buying after last week’s sharp decline,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
A subdued moment in the US dollar also improved the appeal of the precious metal for overseas buyers, he added.
In the international markets, spot gold rose marginally to trade around USD 4,020 per ounce, and silver gained nearly 2 per cent at USD 56.88 per ounce.
Spot gold hovered around USD 4,020 an ounce while silver gained 2 per cent to USD 57, as mediation efforts between the US and Iran continued despite fresh American military strikes on Tehran, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
Crude oil remained the market’s biggest swing factor.
Brent crude briefly climbed above USD 91 a barrel and West Texas Intermediate topped USD 85 after the US extended strikes on Iranian military infrastructure for a ninth consecutive night, she said.
Meanwhile, Tehran widened retaliatory strikes against US allies in the Gulf region.
Later, oil prices retreated after Iran acknowledged diplomatic exchanges through mediators aimed at easing tensions.
“With both chokepoints still live but a mediation channel now open, Brent could retest USD 90 on renewed escalation, though confirmed progress on talks could quickly unwind the current risk premium,” Chainwala said.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said gold is likely to remain range-bound in the near term, with geopolitical headlines driving short-term moves, although expectations of further monetary policy tightening by the Fed continue to limit sustained upside in precious metals.
