Gold hits two-month high of Rs 1.57 lakh/10g
Gold prices climbed for the sixth straight session, rising Rs 200 to a two-month high of Rs 1.57 lakh per 10 grams in the national capital on Tuesday, as stronger investment demand by traders kept bullion elevated despite firm oil rates.
The yellow metal of 99.9 per cent purity jumped Rs 1,200 to 1,57,200 per 10 grams (inclusive of all taxes) from Monday’s closing level of Rs 1,56,000 per 10 grams, according to the All India Sarafa Association.
It had last traded near these levels on June 12, when it quoted Rs 1,56,900 per 10 grams.
The precious metal added Rs 9,800, or 6.65 per cent, over the past six trading sessions, rising from Rs 1,47,400 per 10 grams recorded on August 3.
Silver is also riding the same wave, soaring by Rs 2,000 to Rs 2,42,000 per kilogram (inclusive of all taxes), taking the white metal to its highest level in more than two months. It was last seen trading around this level on April 30, when it was quoted at Rs 2,42,700 per kg.
Gold extended its rally for a sixth consecutive session, climbing to its highest level in more than two months as investors increased safe-haven buying ahead of the US inflation data, which could provide fresh clues on the Federal Reserve’s interest-rate outlook, Gaurav Garg, Head of Research at Lemonn Markets Desk, said.
Silver also traded higher, supported by both industrial demand and positive investor sentiment, he added. In the global markets, spot gold was trading 0.38 per cent lower at $4,373.43 per ounce, while silver dropped nearly 1.3 per cent to $64.90 per ounce.
Gold’s early attempt to push higher in global markets also faded.
Spot prices rose as high as $4,435 per ounce before giving up gains as crude oil rates advanced, said Praveen Singh, Head of Commodities at Mirae Asset ShareKhan.
Crude oil prices rose further as the stalemate over the Strait of Hormuz persisted, adding another layer of uncertainty for investors. Meanwhile, Iran claimed the US was preparing for a military operation and said the IRGC had been ordered to remain prepared. For bullion traders, the next test is the US inflation report. The US July consumer price report due on Wednesday, followed by producer price numbers scheduled for Thursday, will offer fresh signals on the Federal Reserve’s monetary policy outlook, said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
