NEW DELHI, Jan 7: Gold prices surged by Rs 700, reaching Rs 79,700 per 10 grams in the national capital on Tuesday. This increase was attributed to renewed purchasing activity from jewellers and retailers, as well as a decline in the rupee, according to the All India Sarafa Association.
On Monday, the metal concluded at Rs 79,000 per 10 grams.
Silver saw a significant increase of Rs 1,300, hitting a three-week peak of Rs 92,000 per kg on Tuesday. The white metal had closed at Rs 90,700 per kg in the last session.
The price of 99.5 per cent pure gold rose by Rs 700 to reach Rs 79,300 per 10 grams, up from the previous closing of Rs 78,600 per 10 grams on Monday.
Market participants noted that gold prices were bolstered by strong trends in international markets as well as a rise in domestic demand, which propelled bullion prices higher.
The rupee fell by 5 paise on Tuesday, settling at 85.73 (provisional) against the US dollar, influenced by higher crude oil prices and the outflow of foreign funds impacting the local currency.
In futures trading on the MCX, gold contracts for February delivery increased by Rs 122, or 0.16 per cent, reaching Rs 77,280 per 10 grams.
March delivery silver contracts also grew by Rs 551, or 0.61 per cent, climbing to Rs 91,105 per kg in the MCX futures market.
Internationally, Comex gold futures rose 0.28 per cent, trading at USD 2,654.90 per ounce.
“Gold is fluctuating around the USD 2,635 mark as mixed signals prevail. The uncertainty surrounding the upcoming policies of US President Trump is attracting safe-haven flows, providing support for precious metals,” stated Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities.
During Asian trading hours, Comex silver futures were up by 0.73 per cent, trading at USD 30.81 per ounce.
“Investors are closely monitoring the US ISM Services PMI and JOLTS job openings data, which will be released later today, alongside reports on non-farm employment change and unemployment claims,” remarked Chintan Mehta, CEO of Abans Holdings.
Investors will also be attentive to upcoming speeches from Federal Open Market Committee (FOMC) members scheduled for later this week, which may indicate the Federal Reserve’s next policy actions, Mehta added.
According to Renisha Chainani, Head of Research at Augmont, this week is pivotal for gold traders who will be analyzing crucial economic data closely.
“Traders are likely to focus on how this week’s NFP data compares with last week’s inflation figures. If the US jobs report aligns with or falls short of forecasts, it may reaffirm the Federal Reserve’s perspective on a potential pause in the interest rate-cutting cycle.
“Gold prices are significantly influenced by a dovish monetary policy. If the Fed scales back its rate cuts, this could adversely affect gold prices and the economy,” Chainani concluded. (PTI)
