New Delhi- Rising for the third consecutive day, gold prices on Friday surged Rs 700 to trade near a record high at Rs 82,000 per 10 grams in the national capital due to persistent buying in the local markets, according to the All India Sarafa Association.
The precious metal had settled at Rs 81,300 per 10 grams on Thursday.
The price of gold of 99.5 per cent purity continued to shine for the third straight day by jumping Rs 700 to Rs 81,600 per 10 grams against Rs 80,900 per 10 grams in the previous close.
However, silver prices declined Rs 500 to Rs 93,500 per kg on Friday. The metal had ended at Rs 94,000 per kg in the previous trading session.
On October 31 last year, gold of 99.9 per cent purity and 99.5 per cent purity hit a record high of Rs 82,400 and Rs 82,000 per 10 grams, respectively, in the local markets.
Despite a weak trend in the international markets, the precious metal gained in the domestic market, mainly due to higher demand from jewellers, traders said.
Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for February delivery declined Rs 424 or 0.54 per cent to Rs 78,802 per 10 grams.
“Gold witnessed minor profit booking from higher zones on MCX, retreating towards Rs 78,800,” Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
The decline comes as white flags emerge in the Middle East, signalling easing tensions, and the recent positive data from the US, including CPI, retail sales, and the Federal Reserve’s dovish outlook, appear to have been largely priced in, Trivedi added.
Silver contracts for March delivery plummeted Rs 1,093 or 1.18 per cent to Rs 91,710 per kg on the MCX on Friday.
Globally, Comex gold futures fell USD 21.10 per ounce or 0.77 per cent to USD 2,729.80 per ounce.
“Gold dipped slightly below USD 2,750 per ounce ahead of upcoming US housing and industrial production data,” Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said.
Fed Governor Christopher Waller on Thursday said if economic data continues to weaken, the central bank might implement three or four rate cuts this year further stoking the optimism for rate cut expectations which lent support to the metal.
Additionally, Comex silver futures quoted 1.47 per cent lower in the Asian market hours at USD 31.26 per ounce.
Further, uncertainties surrounding US President-elect Donald Trump’s trade policies and tariff plans should contribute to limiting losses for the safe-haven asset, according to commodities experts.
The US dollar remains on track to register gains for the third straight day as traders now look to the US macro data for a fresh impetus, they added.
The post first appeared on Kashmir Observer
