After softening in the prices of gold and silver, a rise was again recorded on Friday. In the national capital, the price of gold increased by Rs 500 to reach Rs 80,000. The precious metal with 99.9 per cent purity had closed at Rs 79,500 per 10 grams on Thursday. The price of gold of 99.5 percent purity increased by Rs 500 to Rs 79,600 per 10 grams. On Thursday it closed at Rs 79,100 per 10 grams. According to PTI news, silver also increased by Rs 800 to Rs 94,600 per kg, whereas on the previous day its price was Rs 93,800 per kg.
Reason for rise in prices
According to the news, All India Bullion Association said that the rise in the prices of precious metals was seen due to fresh purchases by local jewelers and retailers for wedding festivals. Traders said demand from local jewelers has increased for the wedding season. Also, due to the fall of the rupee against the US dollar, investors placed bets on this asset class as a safe investment, which led to a rise in gold prices.
What was the price in the futures market?
Gold contracts for December delivery fell by Rs 198 to trade at Rs 77,213 per 10 grams in futures trade on the Multi Commodity Exchange (MCX). Jatin Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said gold remained weak amid the strength in the dollar index and the Federal Reserve (Fed) policy announcement, which is in line with expectations of a rate cut of 0.25 percent. There were no new surprises to support gold prices as the Fed’s outlook and inflation moving toward its 2 percent target came.
How was the trend in the Asian market?
Profit booking continued after the election victory of Donald Trump. Silver contracts for December delivery fell by Rs 630, or 0.68 per cent, to Rs 91,683 per kg. In Asian market hours, Comex gold futures were down $10 an ounce, or 0.37 percent, at 2,695. Came to $70 per ounce. Gold prices fell below the $2,700 level on Friday, according to commodity experts, as investors expect economic policies under President-elect Donald Trump could boost growth and inflation.
