Gold jumps Rs 600 to Rs 78,050 per 10 gm; silver climbs Rs 1,500

New Delhi: Gold prices jumped Rs 600 to Rs 78,050 per 10 grams in the national capital on Tuesday amid a strong global trend in the overseas market, according to the All India Sarafa Association.

On Monday, the precious metal of 99.9 per cent purity closed at Rs 77,450 per 10 grams.

Gold prices also rose due to increased buying by local jewellers and retailers for the wedding festivities, traders said.

Silver bounced Rs 1,500 to Rs 93,500 per kg against the previous close of Rs 92,000 per kg on Monday.

Gold price of 99.5 per cent purity rose Rs 600 to Rs 77,650 per 10 grams. It had ended at Rs 77,050 per 10 grams in the previous session.

Meanwhile, in futures trade on the MCX, gold contracts for December delivery jumped Rs 615 or 0.82 per cent to trade at Rs 75,662 per 10 grams.

"MCX gold prices experienced a rebound in the last session after several days of underperformance, largely due to a pullback in the dollar index," Deveya Gaglani, Senior Research Analyst at Axis Securities, said.

Silver contracts for December delivery bounced Rs 677 or 0.75 per cent to Rs 91,190 per kg on the Multi Commodity Exchange (MCX).

In the international markets, Comex gold futures rose USD 19.50 per ounce or 0.75 per cent at USD 2,634.10 per ounce.

"Gold prices moved higher as geopolitical tensions escalated, with renewed fears surrounding nuclear risks in the ongoing Russia-Ukraine conflict driving a surge in safe-haven demand boosting gold's appeal," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

According to Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities, gold rallied to a one-week high and surged above USD 2,615 per ounce on Tuesday, buoyed by a pullback in US Treasury yields, the dollar, and safe haven demand.

Comex silver futures quoted 0.79 per cent higher at USD 31.47 per ounce in the Asian trading hours.

As per a report by Goldman Sachs, the agency has projected a substantial increase in precious metal prices for the coming year, driven by heightened central bank acquisitions and expected reductions in US interest rates.

It reiterates a target of USD 3,000 an ounce by December 2025. The structural driver of the forecast is higher demand from central banks, while a cyclical lift would come from flows to exchange-traded funds as the Federal Reserve cuts.

Gold has experienced a strong rally this year, setting many records, but it withdrew following Trump's victory in US Presidential elections, which strengthened the dollar.

The commodity's advance has been underpinned by increased official-sector buying and the US Federal Reserve's pivot to easier monetary policy.

Further, the report also said that the Trump administration may also aid bullion in the near future.

Inputs from PTI