Gold Prices Continue To Rise On Festive Demand: 5 Things To Know
Gold advanced by Rs 130 to Rs 31,980 per 10 grams on Thursday following uptick in festive season demand from jewellers and retailers at the domestic spot market despite a weak global trend, reported news agency Press Trust of India. However, silver met with resistance at prevailing levels and declined by Rs 200 to Rs 39,000 per kg. Bullion traders said gold prices spurted due to surge in festive demand. Besides, the rupee depreciating to a life-time low of 74.50 (intraday) against the dollar, making imports costlier, too supported the uptrend in gold, they said.
Here are key things to know about gold, silver prices:
1. Globally, gold prices rose on Thursday as a sell-off in global stock markets prompted investors to seek safety in the metal, with a softer dollar further supporting bullion, reported news agency Reuters. Spot gold gained 0.8 per cent to $1,203.30 an ounce in the intraday trade. US gold futures added 1.1 per cent at $1,206.20 an ounce.
2. In Delhi, gold of 99.9 per cent and 99.5 per cent purity rose by Rs 130 each to Rs 31,980 and Rs 31,830 per 10 grams, respectively. The metal had gained Rs 200 yesterday. Sovereign, however, remained steady at Rs 24,600 per piece of eight grams.
3. "Gold holds advance amid risk-off sentiment in markets after a rout in US equities extends to Asia... The yellow metal has gone up majorly due to domestic currency impact," said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Commodities.
Meanwhile, Donald Trump's comments on Wednesday triggered a sell-off on Wall Street, with Asian markets opening sharply lower on Thursday in response. "I think the Fed is making a mistake. It's so tight. I think the Fed has gone crazy," the US president said.
4. On the other side, silver ready fell by Rs 200 to Rs39,000 per kg and weekly-based delivery traded higher by Rs 180 to Rs 38,470 per kg on speculative buying. Silver coins however remained unchanged at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.
5. Gold imports in September dropped more than 14 per cent from a year ago as a rally in local prices due to a depreciating rupee reduced demand in the world's second-biggest consumer of bullion, according to provisional data from precious metals consultancy GFMS, reported Reuters.
(With agency inputs)