New Delhi: Gold prices climbed Rs 550 to Rs 74,350 per 10 grams in the national capital on Tuesday on the back of fresh demand from local jewellers.
The precious metal of 99.9 per cent purity had closed at Rs 73,800 per 10 grams in the previous session on Friday.
Silver prices also rallied Rs 1,200 to Rs 88,200 per kilogram on Tuesday from Rs 87,000 per kg in the previous close, according to the All India Sarafa Association.
Meanwhile, gold of 99.5 per cent purity also jumped Rs 550 to Rs 74,000 per 10 grams.
Traders attributed the rise in yellow prices due to a pick-up in demand by local jewellers and retailers in the domestic market.
The bullion markets were closed in New Delhi on Monday on account of Krishna Janmashtami.
In the Asian trading hours, gold is trading at USD 2,543.90 per ounce, down USD 11.30 per ounce.
“Gold declined marginally on Tuesday, weighed down by better than expected US macro data and an uptick in US Treasury yields,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
According to Manav Modi, Senior Analyst, Commodity Research, MOFSL, gold prices fell but remained in sight of record highs it hit last week as the prospect of lower US interest rates battered the US dollar and presented a brighter outlook for metal markets.
Further, bullion surged to record highs last week, as market participants welcomed dovish comments from the Federal Reserve. Some safe haven demand also buoyed gold as ceasefire talks between Israel and Hamas yielded few results, while hostilities in the Middle East persisted, Modi added.
Additionally, silver was quoted lower at USD 30.34 per ounce in the global markets.
“Traders will focus on the US consumer confidence data going to be released later on Tuesday which will provide more insights on the direction of the bullion prices,” Navneet Damani, Group Senior VP of Commodity Research at Motilal Oswal Financial Services (MOFSL), said.
Gold demand in key markets like India and China is expected to rise in the coming months, further supporting prices, Prathamesh Mallya, DVP-Research of Non-Agri Commodities and Currencies at Angel One, said.
On the outlook, gold is likely to remain higher, supported by safe-haven demand amid Middle East tensions and anticipation of potential US interest rate cuts. (PTI)