Gold Silver Reports (GSR) – Gold prices rose by ₹ 150 to ₹ 31,950 per 10 grams on Wednesday amid fresh demand from local jewellers despite weakness in global gold prices, reported PTI. Moreover, a depreciating rupee against the US dollar, which makes gold imports costlier, supported domestic gold prices. Silver prices, however, edged down by ₹ 10 to ₹ 41,550 on selling pressure, added the report. Global gold prices fell to a one-week low in the previous session, as investors waited for clues on the pace of future interest rate hikes by the US Federal Reserve when its policy meeting concludes later in the day.
Global spot gold was little changed at $1,295.02 on Wednesday per ounce at 12.05pm after it touched a one-week low of $1,292.60 in the previous session. US gold futures for August delivery were 0.1% lower at $1,298.50 per ounce.
In Delhi, gold of 99.9% and 99.5% purity advanced by Rs150 each to ₹ 31,950 and ₹ 31,800 per 10 grams, respectively.
Gold prices had fallen by ₹ 250 in the last two days.
US monthly consumer inflation rose moderately in May, suggesting the Fed could continue to gradually raise interest rates this year. Gold is highly sensitive to US interest rates, which lift the opportunity cost of holding non-yielding bullion and boost the dollar, in which it is priced.
The Indian rupee on Wednesday weakened against the US dollar after retail inflation rose to a four-month high. Traders will also keep an eye on the US Federal Reserve policy decision later in the day. The rupee traded at 67.69 against the US dollar, 20 paise from its previous close of 67.49. – Neal Bhai Reports (NBR)
