Gold climbs `550, silver rallies Rs 1,200

New Delhi: Gold prices climbed Rs550 to Rs74,350 per 10 grams in the national capital on Tuesday on the back of fresh demand from local jewellers. The precious metal of 99.9 per cent purity had closed at Rs73,800 per 10 grams in the previous session on Friday. Silver prices also rallied Rs1,200 to Rs88,200 per kilogram on Tuesday from Rs87,000 per kg in the previous close, according to the All India Sarafa Association. Meanwhile, gold of 99.5 per cent purity also jumped Rs550 to Rs74,000 per 10 grams. Traders attributed the rise in yellow prices due to a pick-up in demand by local jewellers and retailers in the domestic market. The bullion markets were closed in New Delhi on Monday on account of Krishna Janmashtami.

In the Asian trading hours, gold is trading at $2,543.90 per ounce, down $11.30 per ounce. “Gold declined marginally on Tuesday, weighed down by better than expected US macro data and an uptick in US Treasury yields,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said. According to Manav Modi, Senior Analyst, Commodity Research, MOFSL, gold prices fell but remained in sight of record highs it hit last week as the prospect of lower US interest rates battered the US dollar and presented a brighter outlook for metal markets.