Gold Prices Surge in New Delhi
New Delhi: Gold price on Wednesday jumped by Rs400 to Rs75,050 per 10 grams in the national capital on the back of fresh buying from jewellers, according to the All India Sarafa Association. The precious metal had closed at Rs 74,650 per 10 grams in the previous session. However, silver prices remained flat at Rs 94,400 per kg. In domestic markets, the yellow metal was trading at Rs 75,050 per 10 grams, up by Rs 400 against the previous close, the association said.
Insight: Factors Driving Gold Price Surge
The surge in gold prices was driven by fresh buying from jewellers in New Delhi. The increase in gold prices can be attributed to the positive trend in international markets, as spot gold was trading higher at $2,380.50 per ounce, up $12.60 per ounce. According to Jateen Trivedi, VP Research Analyst at LKP Securities, the buying was also influenced by expectations of weak inflation numbers to be released in the US, potentially leading to rate cuts by the US Federal Reserve in the upcoming September meeting.
Global Trends and Impact on Silver Prices
On an international scale, silver prices also saw an increase, reaching $31.25 per ounce. This trend follows spot gold closing with a gain of around 0.20 per cent at $2,363 per ounce on Tuesday. Praveen Singh, Associate VP at Sharekhan by BNP Paribas, noted that the Fed Chair Powell’s testimony to the US Senate Banking Committee provided a balanced view on the US economy and the Fed’s monetary policy, influencing the stability in gold and silver prices.
