Moreover, gold with 99.5 per cent purity also rose Rs 600 to Rs 76,600 per 10 gram from Rs 76,000 at the previous close.
Traders attributed the rise in gold prices in local markets to increased demand from jewellers and retailers.
After snapping a seven-day winning streak in the local market, silver fell Rs 1,000 to Rs 90,000 per kilogram due to subdued buying by industrial units and coin makers, according to the All India Sarafa Association.
It had closed at Rs 91,000 per kg in the previous session.
On the other hand, gold contracts for October delivery rose Rs 184, or 0.25 per cent, to Rs 74,224 per 10 grams in futures trading on the Multi Commodity Exchange (MCX). Silver contracts for December delivery were down Rs 1,035, or 1.15 per cent, at Rs 89,100 per kg on the exchange. “Gold prices have risen 27 per cent this year, hitting record highs, boosted by a weakening US dollar and falling Treasury yields, following the Federal Reserve’s 50 basis point rate cut,” Abans Farms CEO Chintan Mehta said:
Rising geopolitical tensions, particularly the risk of a full-scale war in the Middle East, have further boosted demand for this safe-haven asset as Israel continues its attacks on Gaza, Mehta added.
On global markets, Comex gold rose 0.04 percent to $2,647.30 an ounce.
“Gold rose to a fresh record high on Monday, helped by a steady US dollar and persistent demand in physically-backed exchange-traded funds as more buyers sought to hedge against economic uncertainty and geopolitical risks,” said Saumil Gandhi, senior commodity analyst at HDFC Securities.
According to Maneesh Sharma, executive vice president, commodities and currencies at Anand Rathi Shares and Stock Brokers, gold prices could await key US macroeconomic data this week, including the S&P global PMIs and core PCE index.
Traders are also awaiting speeches by top Fed officials, including its chairman Jerome Powell, which could be crucial in determining the future direction of bullion prices, Sharma added.
Silver, however, traded lower at $30.96 an ounce in Asian trading hours.
“The outlook for the precious metal remains constructive, with traders targeting $2,700 in the near term, although weak Chinese demand remains a concern.
“It is expected to find good support on dips as concerns over the US labour market and Chinese economy persist,” said Praveen Singh, associate vice president, fundamental currencies and commodities at Sharekhan by BNP Paribas.
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