New Delhi, Jul 30 (PTI) Cutting short the five-day losing streak, gold prices rebounded by Rs 700 to Rs 98,520 per 10 grams in the national capital on Wednesday due to fresh buying by stockists, according to the All India Sarafa Association.
On Tuesday, the precious metal of 99.9 per cent purity had closed at Rs 97,820 per 10 grams.
In the national capital, gold of 99.5 per cent purity increased Rs 650 to Rs 98,200 per 10 grams (inclusive of all taxes) on Wednesday. The yellow metal had settled at Rs 97,550 per 10 grams in the previous market close.
“Gold prices in the domestic market showed healthy gains on the back of a sharp fall in the rupee. The rupee depreciated due to a jump in crude oil prices and uncertainty about the US-India trade deal,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
On Wednesday, the rupee depreciated 52 paise to close at 87.43 (provisional) against the US dollar on uncertainty over the India-US trade deal after US President Donald Trump hinted at tariff rates of around 20-25 per cent ahead of the August 1 deadline.
Additionally, silver prices climbed by Rs 1,000 to Rs 1,14,000 per kilogram (inclusive of all taxes) on Wednesday. It had traded flat at Rs 1,13,000 per kg on Tuesday, as per the Sarafa Association.
On the global front, spot gold is trading flat at USD 3,330.33 per ounce.
“Gold is trading flat…as investors await a slate of key US macroeconomic data, including Q2 GDP, ADP employment, pending home sales, and Federal Open Market Committee (FOMC) interest rate decision.
“While the Fed is widely expected to keep rates unchanged, markets are closely watching for guidance on the policy outlook, especially amid intense political pressure and mixed economic signals,” Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.
However, spot silver is trading lower at USD 38.09 per ounce in the overseas markets.
“Investors will also be closely watching for US Federal Reserve Chair Jerome Powell’s commentary for any forward-looking cues.
“Further, the GDP data will offer fresh insight into the strength of the American economy and potentially influence the Fed’s tone going forward,” Abans Financial Services’ Chief Executive Officer Chintan Mehta said. PTI HG HG SHW
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