Gold Price Jumps Rs 950 To Rs 97,500 Amid Positive Trends In Global Market

Gold prices in the national capital experienced a significant surge of Rs 950, reaching Rs 97,500 per 10 grams on Tuesday, according to the All India Sarafa Association. This rally is on the back of positive trends in the global markets.

Gold of 99.9% purity climbed to Rs 97,500 per 10 grams, while gold of 99.5% purity rose to Rs 97,100 per 10 grams. This increase follows a sharp decline of Rs 3,400 for both on Monday, when they settled at Rs 96,550 and Rs 96,100 per 10 grams, respectively.

"Gold prices have risen again after a sharp correction, as safe-haven demand eased following a pause in the US-China trade war," according to Chintan Mehta, chief executive officer at Abans Financial Services.

He explained that the US agreeing to reduce tariffs on Chinese imports to 30% from 145%, and China lowering duties on US goods to 10% from 125%, brought calm to global markets. This tariff relief led to an equity market rally and a subsequent pullback in gold over the preceding two days.

"Gold fell over 3% on Monday, lowest closing in nearly two weeks. However, the metal rebounded slightly on Tuesday, edging above $3,240 per ounce," Kaynat Chainwala, AVP of commodity research at Kotak Securities noted. She added that the renewed safe-haven demand stemmed from reports of Israeli airstrikes on Houthi rebel positions in Yemen as well.

"Market participants are closely awaiting the US Consumer Price Index data later in the day," said Jateen Trivedi, VP research analyst, commodity and currency at LKP Securities, highlighted. He added that the inflation print could influence the US Federal Reserve's interest rate outlook and, in turn, affect gold's trajectory.

(With inputs from PTI)