In July, gold and silver prices had corrected by around 7% following the government’s reduction of basic customs duty on gold and other metals. However, the prices rebounded as demand from Indian consumers picked up due to the festive season, along with expectations of rate cuts in the US and escalating geopolitical tensions.
“Gold prices saw another positive move, supported by gains in Comex, where gold moved closer to $2,750. This in turn helped MCX gold stay above Rs 78,750, reflecting the underlying bullish sentiment. The ongoing favourable interest rate cycle has been one of the main factors supporting gold’s rise,” Jateen Trivedi, research analyst of commodity and currency at LKP Securities, told PTI.
In the futures market, gold contracts for December delivery on the Multi Commodity Exchange increased by Rs 112 or 0.14%, trading at Rs 78,768 per 10 grammes. Earlier in the day, gold reached a peak of Rs 78,919 per 10 grammes. The ongoing favourable interest rate cycle has also played a crucial role in supporting the rise in gold prices.
Meanwhile, silver futures for December delivery declined by Rs 456 or 0.46%, trading at Rs 99,516 per kg, after hitting an all-time high of Rs 1,00,081 per kg earlier in the day. Globally, Comex gold and silver prices also reached new highs, reflecting the growing demand for these precious metals amidst market uncertainties.
(With inputs from PTI)