Gold prices surged by Rs 800 to Rs 98,820 per 10 grams in the national capital on Tuesday, driven by robust buying from stockists, according to the All India Sarafa Association.
The yellow metal of 99.9 per cent purity had closed at Rs 98,020 per 10 grams in the previous session. Similarly, gold of 99.5 per cent purity rose by Rs 700 to Rs 98,500 per 10 grams (inclusive of all taxes), compared with Monday’s closing price of Rs 97,800 per 10 grams. Gold prices have gone up again.
“Gold prices rose on Tuesday, supported by demand for safe haven and an increasing consensus that the US Federal Reserve will restart its interest rate-cutting cycle in the upcoming meeting next month. Dovish remarks from Federal Reserve officials, along with last week’s disappointing job market report, led traders to become more optimistic about potential rate cuts at the Fed’s upcoming meeting in September, boosting gold traders sentiment,” said Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities.
Silver prices also witnessed a sharp rise, climbing Rs 2,000 to Rs 1,12,000 per kilogram (inclusive of all taxes). The white metal had finished at Rs 1,10,000 per kg in the last trading session, the Sarafa Association reported.
In the international market, spot gold prices extended its rally on Monday, closing nearly 0.30 per cent higher at USD 3,375 per ounce, buoyed by weak US economic data. “Spot gold extended its rally to close nearly 0.30 per cent higher on Monday at USD 3,375 per ounce as US factory orders fell in June. The US President Donald Trump threatening India with significantly steep tariffs over Russian oil purchases also boosted the metal as the Indian rupee fell to Rs 88/dollar in the NDF market,” said Praveen Singh, Associate Vice-President, Fundamental Currencies and Commodities at Mirae Asset Share Khan.
However, in Tuesday’s early trade in New York, spot gold slipped by USD 20.95, or 0.62 per cent, to USD 3,352.61 per ounce. Analysts said that the market is awaiting key economic data, including the ISM Services PMI and the latest US trade balance figures, which could influence price trends.
“Gold is holding steady near USD 3,430 per ounce as markets await the release of the ISM Services PMI and the latest US trade balance data,” said KaynatChainwala, AVP Commodity Research at Kotak Securities.
On the other hand, spot silver traded flat at USD 37.39 per ounce in the global market.
JateenTrivedi, VP Research Analyst – Commodity and Currency, LKP Securities, noted that market attention remains on US trade policies. “The primary focus remains on trade tariff developments, with the US looking to recalibrate tariffs in its favour. Despite the short-term dip, gold continues to price in the broader impact of trade tariff uncertainty and dollar weakness, keeping the overall trend supported,” he said.
