Gold price today: Yellow metal up Rs 650/10 gram, silver up Rs 1,700/kg after ECB cuts 25 basis points

Gold prices rose 1 per cent or Rs 650 per 10 grams on Thursday, while silver prices rose 2 per cent or Rs 1,700 per kg following cues from international markets. silver bullion prices. The gains were triggered by a 25 basis point rate cut by the European Central Bank (ECB).

October gold futures on the MCX were trading at Rs 72,571 around 7:20 pm, while the December silver contract was hovering around Rs 85,935 per kg at the moment.

On the Comex, gold contracts were trading at $2,568 per troy ounce, up $25.60 or $1.01, while silver futures were trading at $29.515 per troy ounce, up $0.587 or 2.03%.

Anuj Gupta, Head of Commodities and Currencies at HDFC Securities, said the ECB rate cut boosted gold and silver prices. Sentiments were also positive on hopes of a rate cut from China, he added.

China is set to cut interest rates on more than $5 trillion of outstanding mortgages starting this month, according to people familiar with the matter, as it accelerates a move to lower borrowing costs for millions of households to spur consumption, Bloomberg reported.

The European Central Bank cut interest rates again on Thursday as inflation slows and economic growth falters, but it offered almost no clues on its next move even as investors bet on continued policy easing in the coming months. The ECB cut its deposit rate by 25 basis points to 3.50% in a widely telegraphed move, following a similar cut in June as inflation is now within striking distance of its 2% target and the domestic economy is bordering on a recession. Praveen Singh, Associate Vice President, Currencies and Commodities at Sharekhan by BNP Paribas recommended a buy-on-dips strategy for investors.

Read also: Explainer: Why is the rupee falling against the dollar despite the weak dollar index?

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