Gold prices in the national capital rebounded by Rs 400 to Rs 1,48,500 per 10 grams in the bullion market on Friday, driven by value buying after a recent decline. The yellow metal of 99.9 per cent purity had closed at Rs 1,48,100 per 10 grams in the preceding session, according to the All India Sarafa Association.
Silver also gains
Silver prices also rose, climbing Rs 300 to Rs 87,500 per kilogram. The white metal had settled at Rs 87,200 per kg in the previous trade.
Traders attributed the recovery in gold prices to fresh purchases by jewellers and retailers at lower levels, as well as a positive trend in global markets. However, they noted that the upside remained capped due to a stronger dollar and expectations of further interest rate hikes by the US Federal Reserve.
Global cues mixed
Internationally, gold prices edged higher on Friday but were on track for a weekly decline. Spot gold was up 0.2 per cent at $1,925.60 per ounce, while US gold futures rose 0.3 per cent to $1,927.10. The dollar index held near a two-week high, making gold less attractive for holders of other currencies.
“Gold is seeing some bargain buying after the recent correction, but the overall sentiment remains cautious ahead of the US inflation data due next week,” said a senior analyst with a domestic brokerage firm.
Outlook
Market participants will closely watch the US consumer price index (CPI) data for further direction. A higher-than-expected reading could reinforce the Fed’s hawkish stance, weighing on gold prices, while a softer print may support a recovery.
In the domestic market, physical gold demand is expected to pick up ahead of the festive season, providing support to prices. However, any sharp rally may be limited by the strong rupee and higher import duty.
