Gold Rises Rs 250, Silver Falls Amid Global Cues

New Delhi, Jul 12 (PTI) Gold price stayed firm for the third straight session and rose Rs 250 to Rs 75,350 per 10 grams in the national capital on Friday, according to All India Sarafa Association.

The yellow metal had ended Rs 50 higher at Rs 75,100 per 10 grams in the previous session, a day after gaining Rs 400 on Wednesday.

Traders attributed the appreciation to sustained buying by local jewellers amid easing global prices.

The prices of silver, however, declined by Rs 200 to Rs 94,300 per kg. It had settled at Rs 94,500 on Thursday.

In sarafa markets, extending the gains for the third straight session, the precious metal was trading at Rs 75,350 per 10 grams, up by Rs 250 against the previous close, the association said.

In the global markets, spot gold was trading at USD 2,401.89 per ounce, down by USD 13.59 a ounce.

According to market experts, the precious metal retreated in overseas markets on Friday, a day after rallying in response to the announcement of US inflation data.

The price of the precious metal decreased by 0.56 per cent to slightly over USD 2,400 an ounce as traders booked profits, they said.

In addition, silver was also quoted lower at USD 30.73 per ounce.

Gold prices surged on Thursday after fresh data showed that inflation in the US slowed more than expected to a one-year low of 3 per cent in June.

"Meanwhile, Federal Reserve Bank of Chicago President Austan Goolsbee described the latest inflation data as excellent, adding the figures provided the evidence he's been waiting for to be confident the central bank is on a path to its 2 per cent goal," Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.

Comex gold is currently holding steady above USD 2,400 per ounce, as investors are now almost fully pricing in a September rate cut amid the ongoing disinflationary trend, Chainwala added.

According to Praveen Singh – Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, spot gold extended its rally to the third straight day and reconquered USD 2400-mark for the first time since May 22 as the US Consumer Price Index (CPI) inflation data underwhelmed across the board.

Analysts said US Fed Chair Jerome Powell's comments to Senate and House committees further indicated that a rate cut decision is imminent.

"Gold prices are poised to remain strong, driven by lower US consumer prices and increasing expectations of Federal Reserve interest rate cuts," said Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies at Angel One.