Gold prices staged a significant recovery in New Delhi on Monday, with gold rising ₹1,700 to ₹1.52 lakh per 10 grams, according to the All India Sarafa Association. The yellow metal of 99.9 per cent purity ended its four-day losing streak and climbed from Friday's closing level of ₹1,50,600 per 10 grams. Silver also showed strong performance, jumping ₹4,800 to ₹2,45,500 per kilogram, recovering from the previous session's settlement of ₹2,40,700 per kg, which had been down by ₹8,040. As per the All India Sarafa Association, gold prices ended at ₹1,52,300 per 10 grams inclusive of all taxes, while silver reached ₹2,45,500 per kilogram inclusive of all taxes.
According to traders, depreciation in the rupee and strength in overseas markets revived demand for bullion after a sharp correction last week. In 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. As reported by Praveen Singh, Head of Commodities & Currencies at Mirae Asset Sharekhan, the gains were driven by the US and Iran agreeing on a roadmap for a final deal in Switzerland talks, with technical discussions on Iran's nuclear programme and sanctions continuing during the 60-day ceasefire period. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, noted that gold prices edged higher as investors balanced improving geopolitical sentiment against expectations of a prolonged period of higher US interest rates.
According to Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, gold prices edged higher as investors balanced improving geopolitical sentiment against expectations of a prolonged period of higher US interest rates. However, analysts noted that gains in bullion could remain capped by expectations of higher-for-longer interest rates in the United States. Market participants are awaiting key US labour market data later this week for fresh cues on the interest-rate trajectory, with Jateen Trivedi from LKP Securities stating that focus now shifts to this week's US non-farm payrolls and unemployment data, which could provide the next major trigger for gold. Praveen Singh from Mirae Asset Sharekhan added that spot gold and silver were traded higher as the US and Iran have agreed on a roadmap for a final deal in Switzerland talks.
