Gold prices rallied by Rs 600 to Rs 74,100 per 10 grams in the national capital on Tuesday on the back of fresh buying from jewellers. In the previous session, the precious metal of 99.9 per cent purity had closed at Rs 73,500 per 10 grams on Monday.
Silver prices, too, jumped Rs 700 to Rs 84,500 per kilogram from Rs 83,800 per kg in the previous close, according to the All India Sarafa Association.
Additionally, gold of 99.5 per cent purity bounced Rs 400 to Rs 73,750 per 10 grams. It had settled at Rs 73,350 per 10 grams in the previous session.
Traders said gold prices saw an uptrend due to rise in domestic demand. However, a weak trend overseas capped the gains.
In the overseas markets, comex gold is trading lower at USD 2,532.10 per ounce.
“Gold prices have held above USD 2,500-mark through the start of the European session on Tuesday as traders seemed reluctant to place directional bets ahead of the US Inflation reports due to be published in the days ahead,” Maneesh Sharma, AVP of Commodities & Currencies at Anand Rathi Shares and Stock Brokers, said. The US Consumer Price Index is due for release on Wednesday, while the producer price index data will release on Thursday. According to the commodity market experts, the data will influence market expectations about the size of the Fed’s interest rate cut later this month and provide a fresh directions to the non-yielding yellow metal.
However, silver is quoting marginally higher at USD 28.70 per ounce globally.
“The underwhelming US jobs report bolstered the case for Fed easing, though uncertainty about the scale of interest rate cuts limited gold’s upside,” Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said.
Additionally, traders will also closely watch speeches by FOMC members Michael S Barr and Michelle W Bowman.