Surge in Gold Prices Amid Strong Demand and Global Trends

Gold prices soared by Rs 550 to Rs 71,600 per 10 grams in the national capital, driven by robust demand from jewellers and positive global trends. Silver prices remained stable at Rs 84,500 per kg. The international price of gold rose to USD 2,432.90 per ounce. Experts are monitoring upcoming policy meetings for further insights.

Gold prices surged by Rs 550 to Rs 71,600 per 10 grams in the national capital on Tuesday, spurred by strong demand from jewellers and firm global trends, according to market sources.

In the previous trade, the precious metal closed at Rs 71,050 per 10 grams. Contrarily, silver prices remained flat at Rs 84,500 per kg, as reported by the All India Sarafa Association.

Gold of 99.5 per cent purity also jumped by Rs 550 to Rs 71,250 per 10 grams, from its earlier close of Rs 70,700 per 10 grams. Traders attributed this rise to renewed local jeweller demand and a firming international market trend.

On the global front, Comex gold traded higher at USD 2,432.90 per ounce, up USD 7.40 per ounce from the previous close. Market experts indicate that gold prices are in a holding pattern pending outcomes from policy meetings by the Bank of Japan and the US Federal Reserve.

Pranav Mer, VP - Research (Commodity & Currency) at BlinkX and JM Financial, noted, 'Gold/commodities broadly are stuck in a range so far in the session, amid caution ahead of the key event i.e. the policy meeting outcome from Bank of Japan and the U.S. Federal Reserve tomorrow, and the U.S. employment data later in the week.'

In the international markets, Comex silver saw a slight rise of 0.27 per cent, trading at USD 27.94 per ounce. Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities, stated, 'The Federal Reserve is expected to leave interest rates steady on Wednesday, but all eyes will be on any signals of a rate cut in September.'

A recent report by the World Gold Council (WGC) revealed a 5 per cent decline in India's gold demand, down to 149.7 tonnes during the June 2024 quarter, due to record-high prices. Sachin Jain, WGC Regional CEO, India, commented, 'This can be attributed to record-high gold prices impacting affordability and causing a slowdown in consumer purchases. However, the overall value of demand remained strong, increasing by 14 per cent, highlighting gold's enduring value for Indian consumers.'

(With inputs from agencies.)