Gold prices rise for 2nd day on sustained buying
Gold prices rose by Rs 110 to Rs 31,510 per 10 gram, mainly due to sustained local demand from jewellers and global trend
New Delhi: Gold prices rose by Rs 110 to Rs 31,510 per 10 gram on Thursday, mainly due to sustained local demand from jewellers and global trend, PTI reported. A depreciating rupee, which today fell to a fresh record low of 72.11 against the dollar, also helped lift gold prices. In global markets, gold rate edged higher, propelled by a weaker dollar, short-covering and physical buying in Asia. Worries of new US trade tariffs on China, however, cast a cloud over the market. In Delhi, gold rates of 99.9 and 99.5 per cent purity rallied by Rs 110 each to Rs 31,510 and Rs 31,360 per 10 gram, respectively. The metal had gained Rs 200 in Thursday’s trade.
In line with gold, silver prices also rose by Rs 200 to Rs 37,800 per kg on increased offtake by industrial units and coin makers, the report added. Silver coins remained unchanged at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.
Global spot gold prices were up 0.6% at $1,203.35 an ounce at 3.30pm, after rising 0.5 percent in the previous session. US gold futures added 0.6 percent at $1,209 an ounce. Gold has tumbled more than 12% from a peak of $1,365.23 in April. The recent price correction has spurred a lot of physical buying in not just active gold buying countries like India and China, but in southeast Asia for investment purposes too, traders and analysts said.
“The precious metals are witnessing a relief bounce, which coupled with the strong oversold conditions is leading to some short covering,” said Gianclaudio Torlizzi, partner at consultancy T-Commodity in Milan. “The bottom is very close because I think the US dollar is close to reaching the top, together with the peak of the US economy.”
The Indian rupee continued its decline today, falling to historical low of 72 a dollar amid concern that US President Donald Trump could order additional tariffs on China. This was the seventh consecutive day the rupee fell, its longest losing streak since May 2016. The home currency closed at 71.99 a dollar, down 0.32% from its Wednesday’s close of 71.76. It opened at 71.65 per dollar and touched a low of 72.11. So far this year, the rupee has weakened 11.4%.
With inputs from Reuters