Gold and silver prices jumped on Monday. Amid strong global trend, the price of gold rose by Rs 200 to Rs 72,350 per 10 gram in the Delhi bullion market today. According to the All India Sarafa Association, in the previous trading session on Saturday, gold of 99.9 percent purity had shown a decline and closed at Rs 72,150 per 10 gram. According to Bhasha news, the price of silver also jumped by Rs 1,000 to Rs 83,500 per kg. Silver had closed at Rs 82,500 per kg in the previous session.
Reasons for rise in prices
According to reports, gold of 99.5 percent purity in the national capital strengthened by Rs 200 to Rs 72,000 per 10 grams, which closed at Rs 71,800 per 10 grams on Saturday. Traders attributed the rise in gold prices to increased demand from local jewelers and a firm trend in international markets. On the global front, gold was quoted at $ 2,481.80 an ounce in Comex, which is $ 8.40 an ounce higher than the previous day.
Demand boosted as a safe-investment option
HDFC Securities Senior Analyst-Commodities Saumil Gandhi said gold prices rose on Monday as geopolitical concerns amid West Asia crises boosted demand for gold as a safe-haven asset. Besides, traders also increased their bets on aggressive interest rate cuts by the US Federal Reserve this year after recent weak macroeconomic data provided further support to gold, Gandhi said.
Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services, said gold prices remained stable after a sharp rise in the previous session, bolstered by a fall in US bond yields as investors remained confident that the Federal Reserve would reduce interest rates in September this year. Silver rose to $28.01 an ounce in international markets.
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