Gold rebounds Rs 3,600 to Rs 1.52 lakh per 10 gram ahead of festive season

Gold prices jumped Rs 3,600 to Rs 1.52 lakh per 10 grams in the National Capital on Thursday, rebounding from a two-session slide, as buying interest from jewellers and retailers improved ahead of the festive season.

The 99.9 per cent purity metal climbed Rs 3,600 to Rs 1,52,500 per 10 grams, inclusive of all taxes, according to the All India Sarafa Association. It had settled at Rs 1,48,900 per 10 grams on Wednesday.

Traders said jewellers typically increase gold purchases in the form of raw material ahead of the festive season, when demand for jewellery tends to rise. Gold found some support on Thursday after recovering from the two-month low; however, a strong dollar and elevated crude oil prices capped the upside, said Gaurav Garg, Head of Research at brokerage platform Lemonn.

However, silver moved in the opposite direction.

The white metal had resumed its downward march after three sessions of trading flat, falling by Rs 3,000 to Rs 2.24 lakh per kilogram from Rs 2.27 lakh per kg in the preceding session.

The metal hit its lowest level in more than three months, having last traded around this level on June 29.

Globally, spot gold was marginally higher at $4,111.94 per ounce, while silver fell over 2 per cent to $58.50 an ounce. “Gold is steady on Thursday at $4,120 an ounce in global trade after touching a nine-week low in the previous session,” said Vedika Narvekar, Research Analyst- Commodities & Currencies, Anand Rathi Share and Stock Brokers Ltd.

The recovery remained constrained as renewed tensions in West Asia pushed crude oil prices to $105 per barrel, she said.