New Delhi: Gold prices rose for the third straight day today and added another ₹ 50 to ₹ 30,650 per 10 grams amid continued buying by local jewellers and positive global sentiment, reported PTI. Global gold rates hit a one-week high, as the dollar recovered some ground lost following US President Donald Trump’s criticism of the Federal Reserve’s rate hikes. In Delhi, gold prices of 99.9% and 99.5% purity advanced by ₹ 50 each to ₹ 30,650 and ₹ 30,500 per 10 grams, respectively. The metal had gained ₹ 350 in the last two days. Sovereign gold also rose by ₹ 100 to ₹ 24,500 per piece of eight grams.
On the other hand, silver prices eased by ₹ 50 to ₹ 38,100 per kg due to reduced offtake by industrial units and coin makers, added the report. Silver coins, however, remained unaltered at ₹ 72,000 for buying and ₹ 73,000 for selling of 100 pieces.
Global spot gold rates today hit $1,197.66, its highest level since 14 August. US gold futures were largely unchanged at $1,200 an ounce.
A weaker dollar has helped gold recover from a more than one and a half year low hit last week, after prices slumped below the key psychological level of $1,200. Gold has come under pressure this year, sliding more than 12% since hitting a high of $1,365.23 in April, amid US interest rate hikes and a soaring dollar.
Some analysts expect global gold prices to strengthen from here. “It appears, for now at least, gold has reached a trough, and will gradually strengthen," said John Sharma, an economist at National Australia Bank. “The recent comments by President Trump attacking the Fed’s policy of raising rates would only benefit gold. Not adopting a tighter monetary stance might rekindle inflationary pressures, which should boost gold."
In India, BSE, NSE, forex and money market remained closed today on account of “Bakri Id". Looking ahead, traders will focus on US-China trade talks expected to begin later today in Washington, and the release of the US Federal Reserve’s July meeting due to be released today.
With inputs from Reuters