Gold price rises for third day, silver rates surge1 min read . Updated: 16 Jan 2019, 06:46 PM IST
Gold of 99.9% and 99.5% purities today advanced by ₹65 each to ₹33,190 and ₹33,040 per 10 gram
New Delhi: Gold prices today extended gains to the third session on the back of increased demand from domestic jewellers. Gold rates today rose ₹ 65 to ₹ 33,190 per 10 gram, Press Trust of India reported, citing All India Sarafa Association. Tracking gold, silver rates surged ₹ 300 to ₹ 40,500 per kg, supported by demand from industrial units and coin makers. Gold prices had moved up by ₹ 250 in past two days. In Delhi, gold of 99.9% and 99.5% purities advanced by ₹ 65 each to ₹ 33,190 and ₹ 33,040 per 10 gram, respectively. But sovereign gold held steady at ₹ 25,400 per piece of eight grams.
Silver ready today gained ₹ 300 to ₹ 40,200 per kg, while weekly-based delivery declined by ₹ 88 to ₹ 39,833 per kg. Silver coins, however, held flat at ₹ 77,000 for buying and ₹ 78,000 for selling of 100 pieces.
The rupee today settled lower at 71.24 against the US dollar, as compared to the previous close of 71.02. The fall of the rupee increases the imported price of dollar-denominated gold.
In global markets, gold prices edged higher, supported by uncertainty around Brexit after lawmakers voted down British Prime Minister Theresa May’s deal to leave the European Union. Spot gold rates were up 0.3% to $1,292.61 per ounce.
Gold prices also rose on expectations of Federal Reserve going slow on future rate hikes. In separate appearances on Tuesday, various Fed policymakers agreed the central bank should pause further rate hikes until it is clear how much the US economy will be held back by larger risks like slowing growth in China and others like the ongoing budget stalemate in Washington.
Gold prices tend to gain on expectations of lower interest rates, as they reduce the opportunity cost of holding non-yielding bullion. Lower interest rates also tend to weigh on U.S. yields and the dollar, in which gold is priced.
Ajay Kedia, director at Kedia Commodities in Mumbai, said that gold needs to break above the key $1,300 level before making a more meaningful move.