Gold prices fell by Rs 600 to Rs 78,050 per 10 grams in the national capital on Tuesday amid a strong global trend in overseas markets, according to the All India Sarafa Association. On Monday, the precious metal of 99.9 percent purity closed at Rs 77,450 per 10 grams.
Gold prices also rose due to increased buying by local jewelers and dealers at wedding events, dealers said. Silver hit Rs 1,500 to Rs 93,500 500 per kg compared to the previous close of Rs 92,000 per kg on Monday.
The price of gold of 99.5 percent purity rose by Rs 600 to Rs 77,650 per 10 grams. It ended at Rs 77,050 per 10 grams in the previous session. Meanwhile, in futures trade on MCX, gold contracts for December delivery jumped Rs 615 or 0.82 percent to trade at Rs 75,662 per 10 grams.
“MCX gold prices rebounded in the last session after a couple of days of underperformance, mainly due to a pullback in the dollar index,” said Deveya Gaglani, Senior Research Analyst at Axis Securities.
Silver contracts for December delivery rose by Rs 677 or 0.75 percent to Rs 91,190 per kg on the Multi Commodity Exchange (MCX). In international markets, Comex gold futures were up $19.50 an ounce or 0.75 percent at $2,634.10 an ounce.
“Gold prices rose as political tensions escalated, with renewed fears surrounding nuclear risks in the ongoing conflict between Russia and Ukraine fueling demand for a safe haven, fueling demand for gold,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said.
According to Saumil Gandhi, Senior Analyst – Commodities, HDFC Securities, gold rose to a one-week high and rose above $2,615 per ounce on Tuesday, boosted by the decline in US Treasury yields, the dollar, and the need for a safe haven.
Comex silver futures were quoted up 0.79 percent at $31.47 an ounce in Asian trading hours. According to a report by Goldman Sachs, the organization indicated that the price of the precious metal will increase significantly in the coming year, due to the increase in central bank purchases and the reduction of interest rates in the US.
It reiterates a target of $3,000 an ounce by December 2025. The structural driver of the forecast is higher demand from central banks, while cyclical increases will come from flows to exchange-traded funds as the Federal Reserve tapers.
Gold faced the strongest rally of the year, setting several records, but retreated following Trump’s victory in the US presidential election, which strengthened the dollar.
The asset advance was supported by an increase in official sector purchases and the US Federal Reserve’s pivot to easy monetary policy. In addition, the report also said that the Trump administration may also help bullion in the near future.
