Gold Prices Rise By Rs 300 For Third Consecutive Session, Reaching Rs 80,300
In the previous session, gold of 99.9% purity had closed at Rs 80,000 per 10 grams.
(Source: Syed F Hashemi on Unsplash)
Gold prices rose by Rs 300 for the third consecutive session, reaching Rs 80,300 per 10 grams in the national capital on Thursday, driven by strong global factors, according to the All-India Sarafa Association.
Traders noted that the increase was influenced by news that the People's Bank of China had raised its reserves for the second consecutive month.
In the previous session, gold of 99.9% purity had closed at Rs 80,000 per 10 grams. On Thursday, gold of 99.5% purity also gained Rs 300, reaching Rs 79,900 per 10 grams.
Silver prices increased by Rs 500, settling at Rs 93,000 per kg, up from Rs 92,500 per kg on Wednesday.
In futures trading, February gold contracts rose by Rs 247, or 0.32%, to Rs 77,994 per 10 grams on MCX. Silver for March delivery also saw a rise of Rs 593, or 0.65%, reaching Rs 91,531 per kg on the Multi Commodity Exchange.
Globally, Comex gold futures gained $10 per ounce, or 0.37%, to $2,682.40 per ounce.
The rise in gold prices was attributed to a risk-off sentiment in the equity market and weak economic data from China, which led investors toward gold as a safe-haven asset.
"China's consumer inflation fell to zero, decelerating for a fourth straight month, raising concerns about growth in the world's second-largest economy," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
The data has weakened the Chinese government's efforts to tackle deflation and stimulate demand through its stimulus measures, Gandhi noted.
Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, mentioned that Comex gold rose to $2,680 per ounce, continuing its two-day upward trend, as traders awaited the US jobs report scheduled for Friday for more insights into the Federal Reserve's monetary policy direction.
Comex silver futures increased 0.83 per cent in the Asian market hours at $30.95 per ounce.
"The US Fed's Federal Open Market Committee's meeting minutes on Wednesday suggested a possible delay in the rate-easing cycle, however gold is trading strongly".
"Furthermore, investors are turning to precious metals for stability as a result of increased market volatility brought on by elevated geopolitical tensions," Renisha Chainani, Head of Research at Augmont, said.
(With PTI Inputs)
