New Delhi, Nov 2 Gold prices staged a modest recovery by Rs 500 to Rs 1,42,500 per 10 grams in the national capital on Monday, as festive purchases by jewellers and retailers ahead of Diwali helped the precious metal regain some ground after a sharp sell-off in October.
The yellow metal of 99.9 per cent purity closed at Rs 1.42 lakh per 10 grams on Saturday.
Silver, however, remained steady at Rs 1.86 lakh per kilogram, inclusive of all taxes, according to local traders.
Traders said jewellers and retailers increased purchases ahead of the festival, providing some support to domestic precious metal prices. The rupee’s weakness against the US dollar also increased the cost of dollar-denominated bullion.
The rebound came after a sharp correction in October, when gold prices declined Rs 7,300 from Rs 1,49,300 per 10 grams recorded on September 30. Silver witnessed a steeper fall, shedding Rs 46,000 from Rs 2.32 lakh per kg during the same period.
“Gold prices on Monday attempted a recovery after the sharp liquidation seen towards the end of October,” said Gaurav Garg, Head of Research at brokerage firm Lemonn.
However, elevated oil prices continued to weigh on precious metals, he added.
In global markets, spot gold gained USD 24.18, or nearly 1 per cent, to USD 3,899.73 per ounce, while silver rose over 2 per cent to USD 50.25 per ounce.
The yellow metal’s rebound followed Friday’s steep decline, when it plunged nearly 4 per cent to USD 3,875.55 per ounce, its lowest level in more than a year.
“Spot gold rebounded to hover around USD 3,900 per ounce in global markets on Monday, as sentiment remained subdued amid expectations of a higher interest-rate environment and uncertainty surrounding the US election outcome on November 3,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Investors remained cautious, with volatility likely to persist as they assess the outlook for US monetary policy and the midterm election outcome, he added.
According to Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, crude oil prices declined 4 per cent amid reports that US President Donald Trump was willing to give diplomacy another chance to resolve the deadlock between Washington and Tehran.
On the outlook, Singh expects consolidation, although further near-term weakness cannot be ruled out as tensions in West Asia persist and prices remain below the USD 4,000 per ounce threshold.
(PTI News)
