Tracking gold, silver rates also surged Rs 800 to 37,360 per kg on strong demand from industrial units and coin makers. Gold of 99.9% and 99.5% purity advanced Rs 390 each to Rs 31,850 and Rs 31,700 per 10 gram, respectively. Sovereign gold held steady at Rs 24,700 per piece of 8 grams.
Silver ready prices today spurted by Rs 800 to Rs 37,360 per kg, while weekly-based delivery declined by Rs 602 to Rs 35,749 per kg. Silver coins, however, ended flat at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.
Gold prices jumped today, snapping a four-day losing streak. Gold rates rebounded Rs 390 today to Rs 31,850 per 10 gram at the bullion market amid higher global prices and increased demand from jewellers. Gold had lost nearly Rs 400 in the past four days.
In global markets, gold prices jumped to near one-month high on Monday as the dollar weakened after the US and China agreed during the weekend G20 summit in Argentina to a temporary truce in their trade war. Spot gold prices rose 0.7% to $1,230.81 per ounce. US gold futures gained 0.9% to $1,236.50 per ounce.
The rupee however fell sharply today against the US dollar, tracking a surge in global crude prices. The rupee weakened past 70-a-dollar level to close at 70.46. A fall in the value of the rupee against the dollar makes imported gold costlier in India.
Gold prices were also boosted by expectations of slower pace of rate hikes by the US Federal Reserve. Gold tends to gain when rate hike expectations recede because lower rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.
Last week, Fed Chair Jerome Powell said that the bank’s policy rate is now “just below” estimates of a level that neither brakes nor boosts a healthy US economy, comments that many investors read as signalling the Fed’s three-year tightening cycle is drawing to a close.
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Back in India, the recent fall in gold prices to nearly three-month lows perked up demand of the precious metal, said traders.
After decent sales during the Diwali festival, jewellers have been replenishing inventories for the wedding season, a Mumbai-based dealer with a private bank said.
