Gold prices. On Thursday, it rose by Rs 500 to a two-month high of Rs 81,300 per 10 grams in Delhi. Bullion market. The rally was driven by fresh buying by jewelers and retailers, along with a weaker rupee, according to the All India Exchange Association. On Wednesday, the metal closed at Rs 80,800 per 10 grams.
Meanwhile, gold of 99.5 percent purity also jumped by Rs 500 to settle at Rs 80,900 per 10 grams from its previous close of Rs 80,400.
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Silver prices rose by Rs 2,300 to Rs 94,000 per kg against Rs 91,700 on Wednesday.
A bullish signal in the futures market
Gold contracts for February on the Multi Commodity Exchange (MCX) rose by Rs 297, or 0.38 per cent, to Rs 79,007 per 10 grams. Silver for March also rose by Rs 654, or 0.7 per cent, to Rs 93,510 per kg.
Jatin TrivediThe VP Research Analyst, Commodity and Currency at LKP Securities attributed the rally to rupee depreciation and global market trends. “Gold trading above Rs 79,000 on MCX reflects weakening rupee and subsequent supportive international sentiment. US CPI dataTrivedi noted.
The rupee closed 16 paise lower at 86.56 against the US dollar on Thursday, weighed down by a stronger greenback, higher crude oil prices and continued foreign fund outflows.
Global drivers of growth
Globally, Comex gold futures rose $19.70 an ounce, or 0.72%, to $2,737.50 an ounce. Analysts attributed the rally to softer-than-expected US core CPI data, raising hopes for further rate cuts by the Federal Reserve. “Inflation readings have bolstered gold’s momentum, as market expectations lean towards a sustained rate cut,” Trivedi added.
Comex silver futures also gained 1.28 percent, trading at $31.94 an ounce during Asian market hours.
Outlook: Optimism prevails.
Renesha Chenani, head of research at Egmont, painted a bullish picture for gold. “Factors such as potential economic policies under a future Trump administration such as tax cuts and higher tariffs could curb inflation and boost gold prices,” he explained.
HDFC Securities’ Somal Gandhi emphasized that upcoming US macroeconomic data, including retail sales and the Philadelphia Fed manufacturing index, will provide further direction for bullion prices.
As inflationary pressures increase and rates decline, gold appears to be regaining its status as a safe haven, while a parallel rise in silver would point to broader optimism in the bullion market. is