Gold Climbs Rs 1,500 To Rs 1,27,300 On Renewed Safe-Haven Buying Globally

Gold prices climbed Rs 1,500 to Rs 1,27,300 per 10 grams in the national capital on Wednesday tracking a strong rally in the international rates, according to the All India Sarafa Association. The precious metal of 99.5% purity jumped Rs 1,500 to Rs 1,26,700 per 10 grams (inclusive of all taxes).

Silver prices also bounced back, surging Rs 4,000 to Rs 1,60,000 per kilogram (inclusive of all taxes), snapping a three-day losing run in the local bullion market.

'Gold advanced on Wednesday, supported by renewed safe-haven demand, while persistent signs of weakness in the US labour market kept expectations for a potential rate cut alive,' Saumil Gandhi, Senior Analyst -- Commodities at HDFC Securities, said. On the global front, spot gold extended its gains for the second straight session rising $46.32, or 1.14%, to USD 4,114.01 per ounce.

'Spot gold is trading above USD 4,084 level as investors await Federal Open Market Committee (FOMC) minutes of October meeting to be released tonight,' Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, said.

Kaynat Chainwala, AVP & Analyst Commodities Research, Kotak Securities, noted that gold recovered from a one-week low on Tuesday to settle above USD 4,065 per ounce, supported by softer US employment data and caution ahead of several delayed macro releases.

Meanwhile, the US jobless claims rose mid-October, while continuing claims increased to 1.9 million, signalling a cooling labour market conditions. Federal Reserve officials offered mixed cues, with Thomas Barkin highlighted balanced risks between inflation and employment, while Christopher Waller struck a more dovish tone, citing weakening labour conditions.

Spot silver rose appreciated 3.09% to $52.26 per ounce in the overseas trade.

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