Gold prices spiked in Delhi on Tuesday after a rise in the prices of the metal globally and the weakness in the US dollar, PTI news agency reported.
The price of pure gold (99.9%) increased by ₹1,050 to ₹1,61,450 per 10 grams (including all taxes), according to the All India Sarafa Association. Gold had closed at ₹1,60,400 per 10 grams in the previous trading session on Monday. Reeling from some losses in the previous session, Tuesday’s rise helped gold recover a bit of its price.
Silver prices jump in domestic market
Silver showed a similar trajectory, with prices climbing in the domestic market on Tuesday, as noted by the PTI report. Silver gained ₹1,300 to reach ₹2,71,000 per kilogram (including all taxes). In the previous session, silver had settled at ₹2,69,700 per kilogram.
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In international markets, spot gold prices climbed 1% to USD 4,528.75 per ounce, according to market data cited in the PTI report. International silver prices rose 2% to USD 76.29 per ounce.
Gold holds above key USD 4,500 level
Gold stayed steady in overseas markets on Tuesday and continued trading above the key level of USD 4,500 per ounce, according to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities cited by PTI. Gold prices moved within a restricted range during the day as investors waited for more clarity on geopolitical developments, Gandhi added.
Investors were also closely watching upcoming US economic data before taking fresh positions in the market, says Saumil Gandhi of HDFC Securities. A decline in crude oil prices provided support to bullion prices, he added further. Saumil also mentioned that the softer US Treasury yields also helped support gold prices in global markets. The weakness in the US dollar made gold more attractive and supported the recovery in bullion prices.
These factors helped gold prices stabilise after the decline recorded on Monday, he highlighted. Overall, stronger global market trends, a weaker US dollar, lower crude oil prices and softer bond yields were the key reasons behind the rise in gold and silver prices on Tuesday, according to market experts and the All India Sarafa Association cited by the PTI report.