Gold Jumps to 7-Week High, Silver Rallies on Global Trends
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Gold prices soar to a 7-week high of Rs 1.53 lakh/10g in Delhi, with silver also rallying. Rupee depreciation, global trends, and investor demand fuel the precious metal surge.
Photograph: Arnd Wiegmann/Reuters
New Delhi, Aug 6 (PTI) Gold prices rallied for the third straight session, soaring by Rs 3,800 to a seven-week high of Rs 1.53 lakh per 10 grams in the national capital on Thursday, aided by rupee depreciation and firm global trends.
The yellow metal of 99.9 per cent purity climbed Rs 3,800 to Rs 1,53,800 per 10 grams (inclusive of all taxes) from Wednesday's closing level of Rs 1,50,000 per 10 grams.
Gold had last settled near these levels at Rs 1,53,440 per 10 grams on June 18.
Silver also advanced Rs 2,100 to Rs 2,34,800 per kilogram (inclusive of all taxes) from Rs 2,32,700 per kg in the preceding session.
Traders said a weaker rupee made imported bullion costlier in the domestic market, while gains in overseas gold prices amid a softer US dollar and easing Treasury yields lent further support to the precious metals.
On Thursday, the rupee depreciated 16 paise to close at 95.24 (provisional) against the US dollar, on slight gains in the dollar index and a modest increase in US Treasury bond yields.
Gold extended its rally for a third consecutive session, climbing to a seven-week high as a weaker dollar, softer US Treasury bond yields and expectations of a diplomatic breakthrough in West Asia conflict have boosted demand for precious metal, Gaurav Garg, Head of Research at Lemonn Markets Desk, said.
In the overseas markets, spot gold edged higher to USD 4,264.24 per ounce, while silver traded lower at 61.80 per ounce.
Spot gold gained to trade around USD 4,260 per ounce after Iran said that the deal with Oman over the management of maritime traffic through the Strait of Hormuz has been agreed in principle, said Praveen Singh, Head of Commodities at Mirae Asset ShareKhan.
He added that gold also drew support from sustained investor demand, with Chinese gold exchange-traded funds witnessing inflows for the 14th consecutive session.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, investors will closely track the US non-farm payrolls and unemployment data due on Friday, as the releases are expected to play a crucial role in shaping expectations for the Federal Reserve's interest rate outlook.
The yellow metal of 99.9 per cent purity climbed Rs 3,800 to Rs 1,53,800 per 10 grams (inclusive of all taxes) from Wednesday's closing level of Rs 1,50,000 per 10 grams.
Gold had last settled near these levels at Rs 1,53,440 per 10 grams on June 18.
Silver also advanced Rs 2,100 to Rs 2,34,800 per kilogram (inclusive of all taxes) from Rs 2,32,700 per kg in the preceding session.
Traders said a weaker rupee made imported bullion costlier in the domestic market, while gains in overseas gold prices amid a softer US dollar and easing Treasury yields lent further support to the precious metals.
On Thursday, the rupee depreciated 16 paise to close at 95.24 (provisional) against the US dollar, on slight gains in the dollar index and a modest increase in US Treasury bond yields.
Gold extended its rally for a third consecutive session, climbing to a seven-week high as a weaker dollar, softer US Treasury bond yields and expectations of a diplomatic breakthrough in West Asia conflict have boosted demand for precious metal, Gaurav Garg, Head of Research at Lemonn Markets Desk, said.
In the overseas markets, spot gold edged higher to USD 4,264.24 per ounce, while silver traded lower at 61.80 per ounce.
Spot gold gained to trade around USD 4,260 per ounce after Iran said that the deal with Oman over the management of maritime traffic through the Strait of Hormuz has been agreed in principle, said Praveen Singh, Head of Commodities at Mirae Asset ShareKhan.
He added that gold also drew support from sustained investor demand, with Chinese gold exchange-traded funds witnessing inflows for the 14th consecutive session.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, investors will closely track the US non-farm payrolls and unemployment data due on Friday, as the releases are expected to play a crucial role in shaping expectations for the Federal Reserve's interest rate outlook.
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