New Delhi, Jun 22 (PTI) Precious metals staged a recovery in the national capital on Monday, with gold rising Rs 1,700 to Rs 1.52 lakh per 10 grams, while silver rebounded by Rs 4,800, driven by gains in global markets and depreciation in the rupee.
According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity ended its four-day losing streak and ended at Rs 1,52,300 per 10 grams (inclusive of all taxes), climbing Rs 1,700 from Friday’s closing level of Rs 1,50,600 per 10 grams.
Silver also jumped Rs 4,800 to Rs 2,45,500 per kilogram (inclusive of all taxes). In the previous session, the white metal settled at Rs 2,40,700 per kg, down by Rs 8,040.
Traders said depreciation in the rupee and strength in overseas markets revived demand for bullion after a sharp correction last week.
“Gold prices edged higher on Monday as investors balanced improving geopolitical sentiment against expectations of a prolonged period of higher US interest rates,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
In the international markets, spot gold gained USD 49.93, or 1.2 per cent, to USD 4,210.19 per ounce, while silver rose 2.4 per cent at USD 66.47 per ounce.
“Spot gold and silver were traded higher as the US and Iran have agreed on a roadmap for a final deal in Switzerland talks,” Praveen Singh, Head of Commodities & Currencies at Mirae Asset Sharekhan.
Technical discussions on issues, including Iran’s nuclear programme and sanctions, will continue during the 60-day ceasefire period to arrive at a final agreement, he added.
However, analysts said gains in bullion could remain capped by expectations of higher-for-longer interest rates in the United States.
Market participants are also awaiting key US labour market data later this week for fresh cues on the interest-rate trajectory.
“Focus now shifts to this week’s US non-farm payrolls and unemployment data, which could provide the next major trigger for gold,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said. PTI HG HVA
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