Gold Prices Jump On Festive Demand: 5 Things To Know
Gold prices jumped by Rs 200 to Rs 31,850 per 10 grams on increased buying by jewellers and retailers at the bullion market on Wednesday following beginning of auspicious week of 'Navratri', reported news agency Press Trust of India (PTI). A weak trend overseas, however, capped the gains. Silver remained weak and traded Rs 50 lower at Rs 39,200 per kg due to slackened demand from industrial units and coin makers, it further said. Bullion traders said increased buying by local jewellers as well as retailers, driven by beginning of festive demand in domestic spot markets led to the rise in gold prices.
Here are the key things to know about gold, silver prices:
1. Globally, gold prices held steady on Wednesday as expectations of more US interest rate increases pressured demand, although the metal drew some support from the dollar coming off a seven-week high, reported news agency Reuters. Spot gold was little changed at $1,189.05 an ounce in the early-day trade, moving largely within a slim $3 range during the session. US gold futures rose 0.1 per cent to $1,193.20 an ounce.
2. In Delhi, gold of 99.9 and 99.5 per cent purity surged by Rs 200 each to Rs 31,850 and Rs 31,700 per 10 grams, respectively. It had lost Rs 250 in the previous two days. Sovereign gold, however, remained steady at Rs 24,600 per piece of eight grams on little doing.
3. "Comex & MCX gold has been steady as investors weigh President Donald Trump's sustained criticism of the Federal Reserve's pace of interest rate increases," said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Commodities.
Meanwhile, US President Donald Trump on Tuesday again criticized the Fed, telling reporters the central bank is going too fast in raising rates when inflation is minimal and government data points to a strong economy, reported Reuters.
4. On the other hand, silver ready fell by Rs 50 to trade at Rs 39,200 per kg, while weekly-based delivery declined Rs 85 to Rs 38,650 per kg.
5. Silver coins continued to be traded at previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.
(With agency inputs)