New Delhi, Jul 27 (PTI) Gold prices rebounded by Rs 2,440 to Rs 1.49 lakh per 10 grams while silver prices climbed Rs 5,300 to Rs 2.3 lakh per kg in the national capital on Monday following strong trends in global markets.
Gold of 99.9 per cent purity jumped Rs 2,440 to Rs 1,49,640 per 10 grams (inclusive of all taxes), according to the All India Sarafa Association. The metal traded at Rs 1,47,200 per 10 grams in the previous session.
Silver prices also rebounded by Rs 5,300 to Rs 2,30,000 per kg (inclusive of all taxes) from Friday’s closing level of Rs 2,24,700 per kg.
Traders said both precious metals rebounded after two consecutive sessions of losses amid easing inflation concerns as crude oil prices retreated, boosting investor sentiment.
“Gold gained on Monday as easing tensions in West Asia triggered a sharp decline in crude oil prices, easing inflation concerns, while a weak US dollar and lower Treasury bond yields provided further support for bullion,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
He, however, added that gains in the domestic market remained limited as the Indian rupee strengthened against the US dollar.
In the global markets, spot gold gained USD 42.13, or 1.04 per cent, to USD 4,095.30 per ounce, while silver rose 1.47 per cent to USD 59.04 per ounce.
“Spot gold hovered near USD 4,100 per ounce on Monday, while silver extended gains to USD 59 per ounce in the international markets,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
She said the retreat in crude oil prices after a temporary pause in US-Iran strikes eased inflation concerns that had been fuelling expectations of a tight monetary policy, providing relief to bullion.
Pranav Mer, Senior Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, said investors will track developments in West Asia, inflation data from the Eurozone, Japan and the United States.
Besides, GDP number releases, US Consumer Confidence, weekly jobless claims, and monetary policy decisions by the Federal Reserve, the Bank of England, and the Bank of Japan for further direction on bullion prices, he added.
