Gold climbs Rs 300 to reclaim Rs 79k-mark; silver continues to shine for third day

NEW DELHI: Gold price surged to reclaim the Rs 79,000-level in the national capital on Thursday due to fresh buying by jewellers and stockists, according to the All India Sarafa Association.

Snapping its three-day losing run, the precious metal of 99.9 per cent purity rose Rs 300 to Rs 79,150 per 10 grams from the previous close of Rs 78,850 per 10 grams on Wednesday.

Traders said gold climbed due to fresh demand by jewellers and retailers in the local markets.

Silver continued to shine for the third straight day by jumping Rs 1,300 to Rs 93,800 per kg on Thursday. It ended at Rs 92,500 per kg on Wednesday.

Price of gold of 99.5 per cent purity advanced Rs 300 to Rs 78,750 per 10 grams. It settled at Rs 78,450 per 10 grams in the previous trading session.

Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for February delivery dipped Rs 160 or 0.21 per cent to trade at Rs 76,932 per 10 grams.

“Gold traded flat to positive. In MCX, gold is expected to trade within the range of Rs 76,700-77,400,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.

Silver contracts for March delivery declined Rs 188 or 0.2 per cent to Rs 93,105 per kg on the exchange.

Globally, Comex gold futures fell USD 7.20 or 0.27 per cent to USD 2,669 per ounce.

“Persistent global risk, as well as political uncertainty in France and South Korea, contribute to driving up the safe-haven precious metal price.

“Traders will be awaiting the US macroeconomic data, including new unemployment claims and trade balance to be released later on Thursday,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

According to commodity market experts, the bullion remained slightly subdued as Federal Reserve (Fed) Chair Jerome Powell on Wednesday said the US economy is in good shape, adding that September’s policy rate cut was a message to support the labour market.

Powell stated that despite showing progress, it’s premature to declare victory on inflation, and the US central bank could be cautious in setting monetary policy.

Silver also traded 0.27 per cent lower at USD 31.83 per ounce in the Asian market hours.

“Traders believe gold prices are poised to rise further, though a potential delay in additional interest rate cuts could lead to short-term declines, offering opportunities to accumulate,” Abans Holdings’ Chief Executive Officer Chintan Mehta, said.