Silver also followed suit and rose by Rs 1,000 to Rs 93,500 per kg on fresh purchases from industrial units and coin makers. On Tuesday it ended at Rs 92,500 per kg.
Meanwhile, gold with 99.5 per cent purity jumped Rs 250 to hit a new record of Rs 78,500 per 10 gram against the previous close of Rs 78,250 per 10 gram.
Traders attributed the rise in gold prices to the strong demand by local jewelers. Furthermore, the decline in assets markets It also contributed to the yellow metal’s rally as investors flocked to safe-haven assets like gold.
In futures trading on Multi Commodity Exchange (MCX), gold contracts for December delivery rose by Rs 268 or 0.35 per cent to Rs 76,628 per 10 gram.
Silver contracts for December delivery rose by Rs 580 or 0.63 per cent to Rs 92,203 per kg on the exchange. “Gold prices remained elevated with gains on MCX, while gold on Comex traded higher US dollar 2,675. Traders continue to position themselves based on expectations that the Federal Reserve will maintain its path of interest rate cuts,” said Jateen Trivedi, vice president of research and commodities and commodities analyst. Badge of LKP Securities, he said. This has sustained the bullish sentiment around the yellow metal, which hit all-time highs in September. Since then, gold has been consolidating in the low to mid-$2,600 per ounce range as traders anticipate a slower pace of interest rate cuts from the Federal Reserve, Trivedi added.
In international markets, Comex gold futures rose 0.51 percent to $2,692.50 an ounce.
“Conflicting comments from a number of US Federal Reserve officials are keeping market participants on edge.
“Governor Christopher Waller said he supported a cautious stance towards further rate cuts in the coming months, citing recent signs of resilience in the US economy and persistent inflation,” said Manav Modi, senior commodities research analyst at Motilal. Oswal Financial Services Ltd.
According to commodity experts, the expected lower interest rates are bullish for gold prices as they reduce the opportunity cost of maintaining the asset that does not pay interest.
The yellow metal remains strongly supported by elevated geopolitical tensions and uncertainty surrounding the proximity of the US presidential elections.
Federal Reserve officials are divided on the number of rate cuts through the end of the year, the US Federal Reserve remains on track for further policy easing, and markets await upcoming economic data from the central bank . bank to get a clear idea of their rate cut trajectory, they added.
Silver was trading 0.91 percent higher at $32.05 an ounce in Asian market hours.
This week the focus will be on US retail sales, industrial production (IIP) and China’s GDP data, which will provide insight into the trajectory of bullion prices in the near future, Modi added.
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