Gold prices rebounded by Rs 2,000 to Rs 1,54,000 per 10 grams in the national capital on Tuesday, recovering from recent losses, according to the All India Sarafa Association. The precious metal had settled at Rs 1,52,000 per 10 grams in the previous session.
Silver Also Rises
Silver also witnessed a strong uptick, climbing Rs 3,000 to Rs 82,000 per kilogram. In the previous trade, silver had closed at Rs 79,000 per kg.
Factors Behind the Rally
The rebound in gold prices was primarily attributed to a weak US dollar, which made the dollar-denominated commodity cheaper for holders of other currencies. Additionally, positive global cues supported the sentiment in the domestic market.
In the international market, gold was trading higher at $2,458.20 per ounce, while silver was up at $28.90 per ounce. Analysts noted that market participants are closely watching the US Federal Reserve's policy stance, which could influence further price movements.
Domestic Market Trends
In the domestic market, gold of 99.9% purity also rose Rs 2,000 to Rs 1,54,000 per 10 grams, while gold of 99.5% purity gained Rs 1,500 to Rs 1,53,000 per 10 grams. The recovery came after a period of volatility, with prices fluctuating due to global economic uncertainties.
Jewelers reported an increase in inquiries and purchases as consumers took advantage of the dip in prices earlier. However, the latest rebound may temper buying interest in the short term.
The All India Sarafa Association stated that the demand for gold remains steady, driven by wedding season and festival-related purchases. Import data also showed a rise in gold imports in recent months, indicating strong underlying demand.
Looking ahead, market experts expect gold prices to remain influenced by the movement of the US dollar, geopolitical tensions, and central bank policies. A further weakening of the dollar could push prices higher, while any hawkish stance by the Fed may cap gains.
