Silver prices climbed Rs 4,000 to Rs 2.68 lakh per kilogram in the national capital on Wednesday, while gold edged up to Rs 1.61 lakh per 10 grams tracking strong global trends.
According to the All India Sarafa Association, the white metal jumped by Rs 4,000, or 1.5 per cent, to Rs 2,68,500 per kilogram from Tuesday's closing level of Rs 2,64,500 per kg.
Gold of 99.9 per cent purity also witnessed buying by traders, with prices rising Rs 600, or 0.4 per cent, to Rs 1,61,300 per 10 grams (inclusive of all taxes). It had settled at Rs 1,60,700 per 10 grams in the previous session.
Gold and silver advanced on Wednesday supported by growing expectations of a more aggressive rate cut by the Federal Reserve. The move followed softer US economic data as December retail sales fell short of forecasts, signalling a slowdown in consumer spending and reinforcing concerns about moderating growth.
Post-data markets have now raised the probability of three Fed rate cuts this year, up from two just a week ago, a lower interest rate scenario favours non-yielding metals like gold.
In the global markets, spot silver gained USD 4.71, or nearly 6 per cent, to USD 85.51 per ounce, while gold was trading 1.06 per cent higher at USD 5,078.72 per ounce. Spot gold was trading higher on a weaker US dollar on Wednesday as investors await the crucial US nonfarm payroll data (January) due to release later in the day.
The outcome of data numbers is likely to trigger heightened volatility in precious metals in the overseas market. On the geopolitical front, renewed tensions also underpinned safe-haven demand for precious metals.
Also read: Gold and silver prices drop 2 pc after two-day rally
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