New Delhi: Snapping a two-day losing streak, gold prices rose sharply today on increased demand from local jewellers and higher global rates. Gold rates jumped 350 to 32,250 per 10 gram. Tracking gold, silver rates today too jumped 450 to 37,900 per kg, backed by increased offtake by industrial units. In Delhi, gold 99.9% and 99.5% purity recovered by 350 each to 32,250 and 32,100 per gram, respectively. Gold prices had lost 250 in the previous two days.

Sovereign gold prices today held steady at 24,800 per piece of 8 gram. Silver ready rates rallied 450 to 37,900 per cent and weekly-based delivery by 452 to 36,671 per kg. Silver coins, however, continued to be at previous level of 73,000 for buying and 74,000 for selling of 100 pieces.

In global markets, gold prices today edged higher, tracking a weakening of the US dollar. The dollar today weakened against the pound and euro after the British cabinet approved the prime minister’s draft Brexit plan. The dollar index, which measures the greenback against a basket of six major currencies, traded at 96.84, off a 16-month high hit on Monday. Both spot gold and US gold futures were up 0.1%, at $1,212.21 and $1,211.7 per ounce.

Gold prices have support at $1,200, say analysts.

In global markets, gold prices are down 11% from their April peak as investors flocked to the US dollar, amid a backdrop of rising US interest rates.

US President Donald Trump and is expected to meet Chinese President Xi Jinping on the sidelines of a G20 summit in Argentina later this month.

“If a good trade deal comes out of the upcoming talks (between China and the United States) it could be positive for gold," said Renisha Chainani, head of commodity and currency research at Monarch Networth Capital.

Latest data indicate that gold imports fell by 43% to $1.68 billion in October amid depreciating rupee and subdued demand. The rupee has fallen sharply this year, making imports costlier. India is the world’s second-biggest gold consumer after China and imports about 900 tonnes of gold a year.

(With Agency Inputs)

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