Gold Price Rises Rs 350, Silver Slips Rs 200

New Delhi, Aug 2 (PTI) Rising for the fourth straight day, gold prices gained Rs 350 to Rs 72,850 per 10 grams in the national capital on Friday, following higher local demand amid firm global trends.

The precious metal had settled at Rs 72,500 per 10 grams in the previous session.

On the other hand, silver prices declined by Rs 200 to Rs 86,000 per kilogram on Friday. It had closed at Rs 86,200 per kg in the previous trade, according to the All India Sarafa Association.

Additionally, gold of 99.5 per cent purity increased by Rs 350 to 72,500 per 10 grams from Thursday's closing at Rs 72,150 per 10 grams.

Domestically, traders attributed the rise in gold prices to the rising demand from retail buyers as well as jewellers on recent customs duty cuts.

The continuous buying in the yellow metal is in response to the weak US economic data, which were released on Thursday, and the escalating tensions in the Middle East, according to the market experts.

In the commodity markets, investors are showing positive sentiments as they are building their safe haven amid the lingering hope of repo rate cuts by the US Federal Reserve.

"Gold prices extended gains amidst weaker-than-expected economic data and after Federal Reserve Chair Jerome Powell hinted that an interest rate cut could be on the table as early as September if inflation stays in line with expectations," Manav Modi, Senior Analyst, Commodity Research, MOFSL, said.

Globally, Comex gold is trading higher at USD 2,507.40 per ounce, up by USD 26.60 per ounce from the previous close.

"Today, Comex Gold is approaching record high levels amid rising expectations for multiple rate cuts this year," Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said.

In the international markets, Comex silver jumped 2.01 per cent to USD 29.05 per ounce.

Market participants are now cautiously awaiting the US non-farm and unemployment rate scheduled later on Friday, which "could provide clarity regarding interest rate cuts", giving further direction to commodity prices, Modi said.

In Asia, "China's central bank, the top official gold buyer in 2023, did not add to its reserves for the second month in June," said Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd.