New Delhi, Nov 9 Gold staged a modest recovery on Monday, with prices rising by Rs 600 to Rs 1,46,900 per 10 grams in the national capital as weak crude rates and a firm global trend lifted investor sentiment.
The 99.9 per cent pure yellow metal closed at Rs 1,46,300 per 10 grams on Friday.
Silver, however, failed to join the recovery and remained unchanged at Rs 1,92,500 per kilogram (inclusive of all taxes), according to local traders.
The domestic bullion market drew support from easing crude oil prices and a relatively steady US dollar, which helped gold prices recover, said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
According to Gaurav Garg, Head of Research at brokerage firm Lemonn, the recent correction in international gold prices encouraged physical purchases during the Diwali festive season.
In overseas trade, spot gold rose USD 29.69, or nearly 1 per cent, to USD 4,100 per ounce, while silver went up more than 1 per cent to USD 52.58 per ounce.
“Gold prices rebounded above USD 4,100, recovering from last week’s brief fall, as investors assessed stronger US employment data against softer Treasury yields and expectations of easing geopolitical tensions,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd.
He said stronger labour-market data reinforced expectations that the Federal Reserve could maintain a restrictive monetary policy stance or raise rates again in December.
Meanwhile, political developments in the US, including Democrats’ wins in both chambers of Congress, fuelled expectations of constraints on further defence spending and borrowing, alongside hopes of progress towards ending the Iran conflict.
The People’s Bank of China also extended its gold-buying streak to 24 consecutive months, while US President Donald Trump’s conciliatory stance eased oil prices, moderating inflation concerns and providing additional support to bullion.
Investors will track geopolitical developments, Russia-Ukraine peace talks, crude oil movements, US inflation data, and Federal Reserve policy signals for further direction, said Pinky Yadav, Commodity Fundamental Analyst, at Choice Broking.
(PTI News)
