Silver prices also rose Rs 1,200 to Rs 88,200 per kilogram on Tuesday from Rs 87,000 per kilogram at the previous close, according to the All India Sarafa Association.
Meanwhile, gold with 99.5 per cent purity also rose by Rs 550 to Rs 74,000 per 10 grams.
Traders attributed the rise in yellow prices to a pick-up in demand from local jewellers and retailers in the domestic market.
The ingot markets On Monday, the markets in New Delhi were closed due to Krishna Janmashtami. During Asian trading hours, gold is quoted at US Dollar 2,543.90 an ounce, down $11.30 an ounce. “Gold edged lower on Tuesday, weighed down by better-than-expected US macroeconomic data and a pick-up in US Treasury yields,” said Saumil Gandhi, senior commodities analyst at HDFC Securities. According to Manav Modi, senior commodities research analyst at MOFSL, gold prices fell but remained close to the record highs hit last week as the prospect of lower US interest rates hit the US dollar and presented a brighter outlook for metals markets.
Moreover, gold rose to record highs last week as market participants welcomed dovish comments from the Federal Reserve. Safe-haven demand also boosted gold as ceasefire talks between Israel and Hamas yielded few results while hostilities in the Middle East persisted, Modi added.
Silver also fell to $30.34 an ounce on global markets.
“Traders willpower “The focus is on US consumer confidence data due later on Tuesday which will provide further insight into the direction of gold prices,” said Navneet Damani, senior vice president of the commodities research group at Motilal Oswal Financial Services (MOFSL), he said.
Demand for gold in key markets such as India and China is expected to pick up in the coming months, which will further support prices, said Prathamesh Mallya, vice president of non-agricultural commodities and currencies research at Angel One.
As for the outlook, gold is likely to remain higher, supported by safe-haven demand amid tensions in the Middle East and anticipation of possible interest rate cuts in the United States.
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