In the national capital on Tuesday, the price of gold rose by Rs 820 to Rs 79,780 per 10 grams. According to local market sources, the rise in prices was due to fresh buying by jewelers and stockists amid a strong global trend. According to PTI news, the yellow metal with 99.9 percent purity closed at Rs 78,960 per 10 grams on Monday. The price of gold of 99.5 percent purity increased by Rs 820 to Rs 79,380 per 10 grams, while the previous day’s price was Rs 78,560 per 10 grams.
futures prices also increased
According to the news, gold contracts for February delivery rose by Rs 279, or 0.36 percent, to Rs 77,765 per 10 grams in futures trading on the Multi Commodity Exchange (MCX). Gold prices remained volatile as participants awaited Wednesday’s US CPI data. The data is expected to provide clarity about future trends. Traders said prices rose after China signaled easier credit and other stimulus to boost its slowing economy and the People’s Bank of China resumed buying gold. Globally, Comex gold futures rose $15.20 an ounce, or 0.57 per cent, to $2,701 an ounce.
What are experts saying
Jatin Trivedi, Vice President Research Analyst – Commodity & Currency, LKP Securities, said the overall bullish outlook for gold remains intact, but the strong gains ahead of the event suggest caution. Gold is trading positive around $2,700 an ounce in the international spot market due to increase in safe-haven demand amid signs of escalating tensions in the Middle East with the latest developments in Syria and South Korea.
Pranav Mer, Vice President, EBG-Commodity and Currency Research, JM Financial Services Limited, said that the bullion market has also been supported by the news of China resuming purchase of gold and increasing possibility of interest rate cut by the Fed next week. Saumil Gandhi, senior analyst, commodities at HDFC Securities, said that on the macro front, the US will release non-agricultural productivity data.
