Gold Price Soars to Rs 1.64 Lakh on Global Cues

New Delhi, May 20 (PTI) Gold prices climbed Rs 1,300 to Rs 1.64 lakh per 10 grams in the national capital on Wednesday, tracking gains in overseas trade amid lingering tensions between the US and Iran.

According to local marketmen, the yellow metal of 99.9 per cent purity appreciated by Rs 1,300 to Rs 1,64,900 per 10 grams (inclusive of all taxes) from Tuesday's closing level of Rs 1,63,600 per 10 grams.

Traders said renewed buying in precious metals supported domestic gold prices despite elevated US bond yields and a stronger dollar.

However, silver prices dropped for the second straight session, declining by Rs 5,000 to Rs 2,66,000 per kilogram (inclusive of all taxes). The white metal had settled at Rs 2,71,000 per kg in the previous session, marketmen said.


Analysts said silver prices remained volatile due to weak industrial demand and continued profit-taking after the recent sharp swings in rates.

In the international markets, spot gold was trading marginally higher at USD 4,483.54 per ounce while silver rose more than 2 per cent to USD 75.42 per ounce.

Spot gold traded higher on Wednesday, as precious metals found some support after the recent bond market selloff eased, though elevated US Treasury bond yields and a firm dollar continued to cap upside momentum, Brokerage firm Kotak Neo (formerly Kotak Securities) said.

Market participants remained focused on the ongoing US-Iran conflict and delays in reopening the Strait of Hormuz, which continue to fuel inflation concerns and expectations of tighter monetary policy globally, it added.

According to Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, investors are awaiting the minutes of the US Federal Open Market Committee (FOMC) meeting for fresh insights on the American central bank's interest rate trajectory and its near-term impact on the bullion prices.