New Delhi, Aug 20 (PTI) Gold staged a sharp comeback in the national capital on Thursday, rising by Rs 4,300 to a three-month high of Rs 1.62 lakh per 10 grams, and silver surged by Rs 10,000 as investors turned to precious metals amid a weak US dollar.
The yellow metal of 99.9 per cent purity appreciated by Rs 4,300 to Rs 1,62,300 per 10 grams (inclusive of all taxes), according to local traders.
It had closed at Rs 1,58,000 per 10 grams on Wednesday.
The precious metal was last seen at comparable levels on May 26, when it was quoted at Rs 1,62,400 per 10 grams.
Silver mirrored the rally, soaring to a seven-week high of Rs 2,45,000 per kilogram (inclusive of all taxes) from Rs 2,35,000 per kg.
The white metal had traded near these levels on July 3, when it was quoted at Rs 2,45,000 per kg.
“Gold hovered near its highest level in more than two months on Thursday, supported by a sharp decline in the US dollar and Treasury yields,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
The dollar index slid to a three-month low, while lower Treasury bond yields improved the appeal of assets such as gold, he added.
The rally in spot bullion prices came despite a retreat in the overseas markets.
Gold dipped USD 66.31, or 1.47 per cent, to USD 4,456.72 per ounce, and silver dropped nearly 2 per cent to USD 65.82 per ounce.
Spot gold was trading lower at USD 4,450 per ounce as crude oil prices surged over 2 per cent after the US President Donald Trump announced new economic sanctions on Iran, Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
Gaurav Garg, Head of Research at Lemonn Markets Desk, said gold remained near its highest level since early June, supported by lower US Treasury yields and a weaker dollar after the US Treasury increased long-dated bond buybacks.
The US Treasury Department said it will at least double the buyback quantum of off-the-run securities from USD 2 billion to USD 4 billion in the current August quarter.
Investors saw the move as a sign that the US Treasury would keep a close watch on the bond market, with the possibility of further action not ruled out, Singh said.
