Gold prices surged by ₹3,500 to touch a high of ₹1,28,900 per 10 grams in the national capital on Tuesday as wedding season rush led to higher buying by local jewelers and retailers.
As per the All India Sarafa Association, the 99.5 per cent pure yellow metal snapped its three-day streak, appreciating by ₹3,500 to ₹1,28,300 per 10 grams (inclusive of all taxes).
Traders said demand from local jeweller businesses has picked up for the wedding season.
“Gold prices advanced on Tuesday, buoyed by a softer US dollar and surging December rate-cut expectations, following dovish remarks from Federal Reserve officials,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
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Silver prices also witnessed buying interest in tandem with gold. The white metal soared by ₹5,800 to ₹1,60,800 per kilogram (inclusive of all taxes).
A weak US dollar against major currencies also boosts the demand for the safe-haven asset.
In the overseas market, spot gold was trading 0.09 per cent lower at USD 4,131.09 per ounce in New York, while spot silver fell 0.40 per cent at USD 51.15 per ounce.