Gold Prices Jump After Four Days Of Losses: 5 Things To Know

Gold prices in the national capital jumped by Rs 150 to Rs 30,750 per 10 grams.

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Gold Prices Jump After Four Days Of Losses: 5 Things To Know

Gold had had lost Rs 400 in the previous four days.

New Delhi: Gold prices rose today, snapping a four-day losing streak. Gold prices in the national capital jumped by Rs 150 to Rs 30,750 per 10 grams, drawing strength from positive global leads and increased buying by local jewellers. Silver too firmed up by Rs 400 to Rs 40,900 per kg, backed by higher demand from industrial units and coin makers. In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose by Rs 150 each to Rs 30,750 and Rs 30,600 per 10 grams, respectively. The precious metal had lost Rs 400 in the previous four days.

Here are 5 things to know about gold price jump today: 


1) Traders said that domestic jewellers stepped up buying to meet festive season demand at the spot market, which fueled the uptrend in domestic prices.

2) Higher global prices of gold in overseas markets also supported domestic prices. Globally, gold edged up 0.1 per cent in range-bound trade to $1,313 an ounce as the dollar dipped. Investors remained cautious ahead of the outcome of a two-day Federal Reserve meeting in the United States.

3) The US Fed is expected to announce its balance sheet reduction plans and provide an outlook for interest rate hikes for the rest of the year. Higher interest rates lead to higher bond yields and dampen demand for non-interest yielding gold.

4) However, geopolitical tensions supported gold prices. US President Donald Trump escalated his standoff with North Korea over its nuclear challenge on Tuesday, threatening to "totally destroy" the country and mocking its leader, Kim Jong Un, as a "rocket man". 

5) Geopolitical risks tend to boost demand for safe-haven assets such as gold and the Japanese yen. Donald Trump's comments overnight in regards to North Korea have certainly added a bid to the precious complex, but all in all very quiet ahead of the (Fed statement)," a Sydney-based trader said, adding that the dollar was providing some support. (With Agency Inputs)

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