It was raining gold today as the precious metal of 99.5 per cent purity climbed Rs. 1400 to Rs. 96,450 per 10 grams (inclusive of all taxes), according to the All India Sarafa Association, which attributed the increase in price to fresh buying from jewellers and stockists.
Gold of 99.9 per cent and 99.5 per cent purity had closed at Rs 95,050 and Rs 94,600 per 10 grams, respectively, on Thursday.
In addition, silver prices also saw a good day with appreciation by Rs 1,000 to Rs 98,000 per kg on Friday (inclusive of all taxes). The metal had ended at Rs 97,000 per kg in the previous market session.
Meanwhile, spot gold in the international markets declined by US $50.85 or 1.57 per cent to US $3,189.25 per ounce.
“Gold prices remained volatile, hovering near USD 3,200 as markets reacted to potential trade agreements between the US and key partners such as the UK and China,” said Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities.
The absence of a dovish signal from the US Federal Reserve, with no immediate interest rate cut, further limited buying momentum in bullion, Trivedi added.
Kotak Securities’ AVP of Commodity Research, Kaynat Chainwala, said market participants await the US macroeconomic data, such as housing figures and the preliminary University of Michigan Consumer Sentiment and Inflation Expectations reports for May.
According to commodities experts, investors will be waiting for the US Federal Reserve’s Federal Open Market Committee member Mary Daly’s commentary later in the day. The data release and the commentary by Daly will provide more insights on the future course for the interest rate decision cycle.
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