Extending its gains for a fourth consecutive session, silver prices It also rose by Rs 2,000 to Rs 89,000 per kilogram due to increased demand from industrial units and coin makers, according to the All India Sarafa Association.
The white metal had closed at Rs 87,000 per kg at the previous close on Thursday. In the last four sessions, the metal has gained Rs 5,200 per kg.
Meanwhile, gold with 99.5 per cent purity also rose Rs 1,200 to Rs 75,200 per 10 grams from Rs 74,000 per 10 grams at the previous close.
Traders attributed the sharp rise in gold prices to strong signals in international markets, where rates rose to a record high as investors expect a rate cut by the central bank. United States Federal Reserve next week.
Moreover, weddings and the ongoing festival season are boosting purchases, with buyers opting for gold, leading to a surge in demand, traders said. In July, gold prices have corrected sharply by Rs 5,000 to Rs 71,050 per 10 grams in local markets after the government reduced basic prices. customs duties Gold and silver prices rose by 15% to 6%. In Asian trading hours, Comex gold was trading up 0.74% at $2,599.70 an ounce.
“Comex gold prices hit a fresh record high on Friday, boosted by a weakening dollar as investors anticipate an interest rate cut by the US Federal Reserve next week,” said Kaynat Chainwala, assistant vice president, commodities research, Kotak Securities.
According to commodity market experts, lower interest rates are positive for gold prices because they reduce the opportunity cost of holding the non-interest-bearing asset, making it attractive to investors.
Silver also traded higher at $30.47 per ounce on overseas markets.
“Gold prices rose to fresh highs above $2,550 per ounce, while silver hit three-week highs following major rate cuts by the European Central Bank and a weakening dollar index,” said Rahul Kalantri, vice president, commodities, Mehta Equities Ltd.
According to Deveya Gaglani, senior research analyst at Axis Securities, Comex gold prices saw a strong rally of 1.9 percent, the strongest since August 16 this year.
“The latest inflation data this week has significantly increased the probability of a rate cut by the Fed next week. This key factor has fueled bullish sentiment among precious metals traders,” Gaglani said.
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