New Delhi, Sep 20 (PTI) Gold prices rallied Rs 700 to Rs 76,350 per 10 grams in the national capital on Friday amid a rise in precious metal rates globally.
On Thursday, the yellow metal of 99.9 per cent purity had closed at Rs 75,650 per 10 grams in the previous session.
However, silver remained flat at Rs 91,000 per kilogram.
Additionally, gold of 99.5 per cent purity rose for the third straight session, climbing Rs 700 to Rs 76,000 per 10 grams on Friday, according to All India Sarafa Association.
It had ended at Rs 75,300 per 10 grams in the previous close.
In the local markets, traders attributed the jump in precious metal prices to a pick-up in demand by jewellers and stockists, owing to festivals and upcoming wedding season.
On the other hand, gold contracts for October delivery jumped Rs 341 or 0.46 per cent to Rs 73,779 per 10 grams in the futures trade on the Multi Commodity Exchange (MCX).
Silver contracts for December delivery rose Rs 145 or 0.16 per cent to Rs 90,113 per kg on the exchange.
India’s gold imports more than doubled in August to a record high of USD 10.06 billion, mainly on account of a drastic cut in customs duty and festive demand, according to the Commerce Ministry data.
Gold imports stood at USD 4.93 billion in August 2023.
On record high imports, Commerce Secretary Sunil Barthwal said that the tariff rates on gold have been reduced drastically so that smuggling and other activities can come down.
“And this is the time when jewellers start stocking for their inventories to be sold in the festival season,” Barthwal added.
In the Budget, the government slashed the duty from 15 per cent to 6 per cent. India is the world’s second-biggest gold consumer after China.
In the international markets, Comex gold futures is trading 0.70 per cent to USD 2,632.90 per ounce.
“Gold prices rose over 1 per cent as the US Federal Reserve launched its monetary easing cycle with a half percentage point move, boosting bullion to an all-time high,” Manav Modi, Senior Analyst – Commodity Research at Motilal Oswal Financial Securities Ltd, said.
However, market participants were slightly taken back post US Federal Reserve Chair Jerome Powell’s commentary as he mentioned that the Fed will move meeting-to-meeting and keep a data dependent approach.
Powell did not commit to further cuts in the coming meetings as oppose to what market participants have been discounting.
In the Asian trading hours, silver was also traded higher at USD 31.54 per ounce.
“Comex gold prices surged to fresh all-time high driven by the Fed’s aggressive 50 basis points rate cut,” Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.
Initially, prices retreated as Powell warned against expectations of continued aggressive rate cuts.
However, gold rebounded as the dollar weakened, coupled with increased safe-haven buying due to escalating geopolitical tensions in the Middle East, particularly following attacks on Hezbollah members in Lebanon, Chainwala said. PTI HG HG SHW CS CS
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.