The price of gold rose by Rs 300 to Rs 73,150 per 10 gram in the national capital Delhi on Wednesday. The yellow metal of 99.9 percent purity had closed at Rs 72,850 per 10 gram in the previous session on Tuesday. However, in contrast, according to All India Sarafa Association, the price of silver fell by Rs 300 to Rs 83,200 per kg from the previous close of Rs 83,500 per kg. Registering a rise for the third consecutive session, the price of gold of 99.9 percent and 99.5 percent purity rose by Rs 300 each to Rs 73,150 and Rs 72,800 per 10 gram, respectively, reported Bhasha.
Reason for change in prices
According to the news, amid a jump in the prices of precious metals in the international markets, traders said that gold prices rose due to a rise in domestic demand as well as global influences. Globally, Comex gold is trading at $ 2,512. Comex gold strengthened near record highs, closing higher for the fifth consecutive session, supported by a weak dollar and a fall in US Treasury yields on rising US producer price index data.
Gold prices are getting stronger from stable
Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said geopolitical tensions led to a rise in safe-haven demand for gold. Silver was also quoted at $27.98 an ounce in the international markets. According to market experts, gold prices are trading stable to strong after hitting their all-time highs due to a fall in the US dollar and Treasury yields amid rising expectations of interest rate cuts from the Fed on signs of further reduction in inflation.
Keep an eye on the Federal Reserve
The yellow metal is marginally higher ahead of crucial US Consumer Price Index (CPI) inflation data scheduled to be released later on Wednesday. Moreover, soft inflation data will increase the possibility of a US Federal Reserve (Fed) interest rate cut and this will be positive for gold prices, said Praveen Singh, Associate VP, Fundamental Currencies & Commodities at Sharekhan by BNP Paribas. Weak Chinese demand is a bearish signal for the yellow metal, however, markets are primarily focused on the US economy and its monetary policy, Singh said.
Latest Business News
