New Delhi: Gold prices rebounded by Rs 3,000 to Rs 1.47 lakh per 10 grams in the national capital on Thursday as firm trends in the international markets and a weak US dollar revived demand for the precious metal.
Halting a two-day slide, the yellow metal of 99.9 per cent purity climbed Rs 3,000 to Rs 1,47,500 per 10 grams (inclusive of all taxes) from Wednesday’s closing level of Rs 1,44,500 per 10 grams, according to local traders.
Silver continued its upward trajectory for the third consecutive session, rising Rs 5,000 to Rs 2,40,000 per kilogram (inclusive of all taxes). The white metal settled at Rs 2,35,000 per kg in the preceding session.
Traders said depreciation in the rupee and strength in overseas markets revived demand for bullion after a sharp correction last week.
“Gold prices edged higher on Monday as investors balanced improving geopolitical sentiment against expectations of a prolonged period of higher US interest rates,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
In the international markets, spot gold gained USD 49.93, or 1.2 per cent, to USD 4,210.19 per ounce, while silver rose 2.4 per cent at USD 66.47 per ounce.
“Spot gold and silver were traded higher as the US and Iran have agreed on a roadmap for a final deal in Switzerland talks,” Praveen Singh, Head of Commodities & Currencies at Mirae Asset Sharekhan.
Technical discussions on issues, including Iran’s nuclear programme and sanctions, will continue during the 60-day ceasefire period to arrive at a final agreement, he added.
However, analysts said gains in bullion could remain capped by expectations of higher-for-longer interest rates in the United States.
Market participants are also awaiting key US labour market data later this week for fresh cues on the interest-rate trajectory.
“Focus now shifts to this week’s US non-farm payrolls and unemployment data, which could provide the next major trigger for gold,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.
