New Delhi, Jan 13: Gold prices surged for the fifth consecutive session, climbing by Rs 110 to reach Rs 80,660 per 10 grams in the national capital on Monday, as reported by the All India Sarafa Association.
In the previous session on Friday, gold was settled at Rs 80,550 per 10 grams.
Over the last five trading sessions, the price of gold has increased by Rs 1,660, representing a rise of 2.1 percent, reaching Rs 80,660 per 10 grams.
The cost of 99.5 percent pure gold also saw an uptick of Rs 110, settling at Rs 80,260 per 10 grams compared to the prior close of Rs 80,150 per 10 grams on Friday.
“The rise in gold prices is attributed to a weakening rupee, which hit 86.61, amid rising crude oil prices. This increase in crude is linked to new sanctions placed on Russia by US President Joe Biden, heightening geopolitical tensions,” stated Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities.
The rupee experienced its most significant single-day drop in almost two years, ending the day 58 paise lower at a historical low of 86.62 (provisional) against the US dollar on Monday, pressured by a stronger American currency and skyrocketing crude oil prices.
“This depreciation of the rupee bolstered gold prices in the domestic market, enhancing the effects of global factors,” Trivedi added.
In contrast, silver prices remained flat for the second consecutive session at Rs 93,000 per kg on Monday.
Furthermore, gold contracts for February delivery on the MCX rose by Rs 227 or 0.29 percent, reaching Rs 78,650 per 10 grams in futures trading on Monday.
However, silver contracts for March delivery faced a decline, dropping Rs 821 or 0.89 percent to Rs 91,685 per kg on the Multi Commodity Exchange (MCX).
On the international front, Comex gold futures fell by USD 10.70 per ounce or 0.39 percent, now standing at USD 2,704.30 per ounce.
“Spot gold prices are stable following a 1.95 percent increase last week. This rise was driven by inflation concerns that could be intensified by President-elect Trump’s policies and increasing global debt, particularly in the US,” noted Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Commodity experts indicated that the encouraging US Nonfarm Payrolls (NFP) report has strengthened market beliefs that the Federal Reserve (Fed) may halt its rate-cutting measures later this month.
This situation keeps US Treasury bond yields elevated near their peak in over a year, with the US dollar close to a two-year high, which, in turn, applies pressure on gold prices, they explained.
Comex silver futures traded 1.4 percent lower at USD 30.88 per ounce during Asian market hours.
“With the labor market stabilizing and consumer demand maintaining strength, attention in the US has shifted back to inflation risks. This week’s notable data release will be the US CPI inflation rate, with minimal expectations for a considerable drop in inflation likely keeping the Fed’s rate-setting approach unchanged,” said Renisha Chainani, Head of Research at Augmont. (Agencies)
