Gold jumps Rs1,150 to Rs78,500/10g; silver soars Rs1,500
The rise in local demand, along with a positive global trend, mainly led to the upward movement in gold prices, traders said
image for illustrative purpose
New Delhi: Gold prices jumped by Rs1,150 to Rs78,500 per 10 grams, hovering near all-time high levels, in the national capital on Friday on fresh buying from jewellers amid a positive trend globally, according to the All India Sarafa Association. The precious metal of 99.9 per cent purity had closed at Rs77,350 per 10 grams in the previous session on Thursday. Silver surged by Rs1,500 to Rs93,000 per kg, extending the gains for the second consecutive day. It had settled at Rs91,500 per kg on Thursday. Snapping a three-day losing run, gold of 99.5 per cent purity bounced Rs1,150 to Rs78,100 per 10 grams. The yellow metal had finished at Rs76,950 per 10 grams in the previous close. The rise in local demand, along with a positive global trend, mainly led to the upward movement in gold prices, traders said.
In futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery climbed Rs613 or 0.81 per cent to trade at Rs75,910 per 10 grams. "Gold prices remained elevated. The key drivers for the ongoing positive trend include US data that supports the continuation of interest rate cuts, particularly due to high jobless claims and elevated crude oil prices, which indicate persistent inflationary pressures," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said. Silver contracts for December delivery also surged Rs900 or 1 per cent to Rs91,204 per kg on the MCX.
Globally, Comex gold futures rose 0.79 per cent to $2,660.10 per ounce. "Gold climbed on Friday, extending its overnight recovery as traders continued to assess the US Federal Reserve's policy direction following mixed economic data," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said. Furthermore, the demand for safe-haven assets bolsters the gold price as tensions in the Middle East elevated after Israeli PM Netanyahu's security cabinet convened to deliberate on the country's response to Iran's recent missile attack, Gandhi added.
Silver was quoted 0.56 per cent higher to $31.42 per ounce in the international markets. Abans Holdings' Chief Executive Officer Chintan Mehta said that the US unemployment claims spiked significantly, marking a 17-month high, and with US Presidential elections nearing, investors are likely to shift towards safer assets due to the uncertainty surrounding the political landscape and future policies, further bolstering gold's appeal. Additionally, rising geopolitical risks and growing tensions in the Middle East and the Korean Peninsula indicate a bullish outlook for the safe-haven metal. Markets will be watching US Core Producer Price Index data, Mehta added.
