NEW DELHI, Jan 9: The price of gold increased by Rs 300 for the third straight session, reaching Rs 80,300 per 10 grams in the national capital on Thursday, driven by robust global factors, as reported by the All India Sarafa Association.
According to traders, the rise in the precious metal’s price was spurred by the announcement that the People’s Bank of China (PBoC) has boosted its reserves for the second month in a row.
In the last session, the price of 99.9% pure gold closed at Rs 80,000 per 10 grams.
The rate for 99.5% gold also saw an increase of Rs 300, reaching Rs 79,900 per 10 grams on Thursday.
Silver prices rose by Rs 500, standing at Rs 93,000 per kg compared to the previous close of Rs 92,500 per kg on Wednesday.
Furthermore, gold contracts scheduled for February delivery rose by Rs 247 or 0.32%, to Rs 77,994 per 10 grams in futures trading on MCX.
In the futures market, silver for March delivery surged by Rs 593 or 0.65%, reaching Rs 91,531 per kg on the Multi Commodity Exchange (MCX).
On the global front, Comex gold futures increased by USD 10 per ounce, or 0.37%, reaching USD 2,682.40 per ounce.
“Gold’s rise on Thursday reflects a risk-off sentiment prevailing in the equity market amid disappointing macroeconomic data from China, leading to more interest in gold as a traditional safe haven asset,” stated Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
“China’s consumer inflation has dropped to zero, marking four consecutive months of deceleration, which raises concerns regarding growth in the world’s second-largest economy,” he added.
This data has weakened the Chinese government’s efforts to counter deflation and stimulate demand through various measures, Gandhi noted.
Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, mentioned that Comex gold edged up to USD 2,680 per ounce, continuing the upward trend as traders look forward to the official US jobs report scheduled for Friday, which may provide further insights into the Federal Reserve’s monetary policy.
Comex silver futures saw an increase of 0.83% during Asian market hours, reaching USD 30.95 per ounce.
“The recent meeting minutes from the US Fed’s Federal Open Market Committee (FOMC) indicated a potential delay in the easing of rates; nevertheless, gold remains strong in the market,” Chainwala noted.
“Additionally, the current elevated geopolitical tensions are prompting investors to seek stability in precious metals,” Renisha Chainani, Head of Research at Augmont, commented. (PTI)
