NEW DELHI, Aug 20 : Gold prices saw the sharpest gain in the past one month and rallied by Rs 1,400 to touch Rs 74,150 per 10 grams in the local market on Tuesday, amid strong global cues.
The precious metal had closed at Rs 72,750 per 10 grams in the previous session on Friday.
Silver price also climbed by Rs 3,150 to Rs 87,150 per kilogram from Rs 84,000 per kg in the previous close.
Gold prices recorded a steady fall after Union Finance Minister announced import duty cut on the metal in the annual budget for FY25. On July 23, the yellow metal had crashed Rs 3,350 to touch Rs 72,300 per 10 grams.
Meanwhile on Tuesday, gold of 99.9 per cent and 99.5 per cent purity increased by Rs 1,400 each to Rs 74,150 and Rs 73,800 per 10 grams, respectively.
Traders attributed the rise in gold prices to increased demand from local jewellers as well as global trends.
On the global front, gold is trading higher at USD 2,560.10 per ounce, up USD 18.80 per ounce.
“Gold extended its gains on Tuesday, buoyed by expectations of aggressive US Federal Reserve (Fed) interest rate cuts,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, Comex gold prices started the week with modest gains, peaking at a record high of USD 2,549.90 before settling at USD 2,541.
“The uptick was driven by safe-haven demand and a weaker dollar amid concerns over the resilience of the US economy, geopolitical tensions, and recent comments from the Chicago Fed President that reignited recession fears.
“Investors are closely watching the Fed’s upcoming interest rate decision, as policymakers have signaled a cautious stance,” Chainwala said.
Silver also trading higher at USD 30.19 per ounce in the international markets.
“Gold continues to trade steady above USD 2,500 per ounce. Focus will be on the US Fed Chair Jerome Powell’s speech at Jackson Hole Symposium for any clues on the Fed’s interest rate cut trajectory,” Pranav Mer, VP – Research (Commodity & Currency) at BlinkX and JM Financial, said.
As per Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, major macroeconomic data including the Euro-zone CPI inflation to be release later on Tuesday which will also provide direction for the bullion prices. (PTI)
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