Home / Markets / Commodities /  Gold prices jump 1,000 in 2 days in India, rise to near 3-month highs
Listen to this article

Gold and silver continued their upward momentum this week in India, supported by dovish stance of central banks and festive buying demand. On MCX, gold futures jumped 0.82% to settle near three-month high of 48,000 per 10 gram on Friday while silver rose 0.33% to 64330 per kg. In fact, gold has surged about 1,000 per 10 gram over the past two sessions. 

In global markets, gold rose more than 1% on Friday to a near two-month high as major central banks' dovish tone on interest rates this week supported the demand for the safe-haven metal. Spot gold was up 1.2% at $1,813 while silver rose 1.2% to $24.05 per ounce. This week, the central bank announcements helped gold reverse from early losses.

On Wednesday, the Federal Reserve after its two-day policy meeting stuck to its view that inflation would prove "transitory" and would likely not require a fast rise in interest rates. The next day the Bank of England surprised investors by keeping rates on hold.

Yields on the US 10-year treasury notes on Friday slipped to their lowest level in about a month. This came despite better-than-expected jobs data in US that pushed Wall Street to new highs. 

The US economy added a better-than-expected 531,000 jobs last month as a wide range of industries took on workers, and the unemployment rate dropped to 4.6%, Labor Department data showed.

Near-zero interest rates to spur economic growth during the COVID-19 pandemic have propelled gold prices to new highs over the last two years, as easy monetary policy cuts the opportunity cost of holding non-yielding assets.

In India, physical gold demand in India picked up as buyers took advantage of a slight dip in prices and bought the precious metal during the festival season.

"Retail demand during Dhanteras and Diwali was 25% more than the pre-pandemic level of 2019," said Amit Modak, chief executive officer at jeweller PN Gadgil and Sons, told Reuters. (With Agency Inputs)


Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout