On Monday, the gold prices ended at Rs 79,000 per 10 grams.
Gold prices experienced a significant climb of Rs 700, reaching Rs 79,700 per 10 grams in the national capital on Tuesday, driven by fresh buying from jewellers and retailers, coupled with a depreciating rupee.
The All India Sarafa Association reported that gold, which was priced at Rs 79,000 per 10 grams on Monday, saw an uptick due to increased domestic demand and strong trends in overseas markets.
Similarly, silver prices surged by Rs 1,300, reaching a three-week high of Rs 92,000 per kg, compared to Rs 90,700 per kg in the previous session. The rise in bullion prices was attributed to robust buying activity and global market trends.
Domestic and Futures Market Performance
In the domestic market, gold of 99.5% purity saw an increase to Rs 79,300 per 10 grams from the previous close of Rs 78,600 per 10 grams.
The Multi Commodity Exchange (MCX) reflected this trend, with gold contracts for February delivery rising by Rs 122, or 0.16%, to Rs 77,280 per 10 grams. Silver contracts for March delivery also appreciated by Rs 551, or 0.61%, to Rs 91,105 per kg.
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Global Market Trends
In the international markets, Comex gold futures rose 0.28% to USD 2,654.90 per ounce, while Comex silver futures in Asian trading hours increased by 0.73% to USD 30.81 per ounce.
Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, highlighted that gold is hovering around the USD 2,635 level due to mixed cues and uncertainty around US policies, which is attracting haven flows.
Key Economic Indicators
Market participants are closely monitoring upcoming US economic data, including the ISM Services PMI, JOLTS job openings, non-farm employment change, and unemployment claims.
These indicators are expected to provide insight into the Federal Reserve’s next policy move, which could influence gold prices.
Renisha Chainani, Head of Research at Augmont, emphasized the importance of this week’s economic data for gold traders, noting that the Federal Reserve’s stance on interest rates could significantly impact gold prices.
A less aggressive rate-cutting cycle may negatively affect gold prices, depending on the economic data outcomes.
Conclusion
The surge in gold and silver prices highlights the influence of both domestic and international market dynamics.
Investors and traders will continue to monitor economic indicators and Federal Reserve policies closely, as these factors are likely to shape the future trajectory of precious metal prices.
