New Delhi: On Tuesday, gold prices in the national capital surged by Rs 600 to reach Rs 74,100 per 10 grams due to new purchases made by jewellers. During the last session, the pure precious metal had ended the day at a price of Rs 73,500 for 10 grams on Monday. According to the All India Sarafa Association, the price of silver also increased by Rs 700 to reach Rs 84,500 per kilogram, up from Rs 83,800 per kg in the previous closing. In addition, gold with a purity of 99.5 percent increased by Rs 400 to Rs 73,750 per 10 grams. In the last session, it had stabilized at Rs 73,350 per 10 grams.
According to traders, the increase in domestic demand resulted in an upward trend in gold prices. Nevertheless, the increase in value was limited by a slight trend in foreign markets. Comex gold is currently being traded at a lower value of USD 2,532.10 per ounce in international markets. Maneesh Sharma, AVP of Commodities & Currencies at Anand Rathi Shares and Stock Brokers, mentioned that gold prices stayed above USD 2,500 during the start of the European session on Tuesday as traders were hesitant to make any major decisions before the upcoming US Inflation reports.
The release of the US Consumer Price Index is scheduled for Wednesday, with the producer price index data being released on Thursday. As per experts in the commodity market, the information will impact market anticipations regarding the scale of the Fed's upcoming interest rate reduction and offer new guidance for the non-producing gold. Nevertheless, the price of silver is slightly elevated at USD 28.70 per ounce on a worldwide scale.
Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, stated that the disappointing US jobs report supported the argument for Fed easing, but doubts regarding the extent of interest rate reductions restrained gold's potential increase. Traders will also keep a close eye on speeches given by FOMC members Michael.
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