Gold prices rose by Rs 200 to Rs 1.54 lakh per 10 grams in the national capital on Friday, tracking a sharp rally in overseas markets as a weaker US dollar and softer crude oil prices lifted bullion demand.New Delhi, Aug 7: Gold prices rose by Rs 200 to Rs 1.54 lakh per 10 grams in the national capital on Friday, tracking a sharp rally in overseas markets as a weaker US dollar and softer crude oil prices lifted bullion demand.
Rising for the fourth consecutive session, the yellow metal of 99.9 per cent purity increased by Rs 200 to Rs 1,54,000 per 10 grams (inclusive of all taxes) from Thursday’s closing level of Rs 1,53,800 per 10 grams, according to local traders.
However, silver remained unchanged at Rs 2,34,800 per kilogram (inclusive of all taxes) after witnessing a sharp rise in the previous session, according to local traders.
Gold extended its gains for the fourth consecutive session, with the precious metal heading for its strongest weekly performance since January, said Gaurav Garg, Head of Research, Lemonn Markets Desk.
He attributed the rally to a weak dollar, easing inflation expectations and continued demand for bullion ahead of the US non-farm payrolls report, which could influence the Federal Reserve’s next policy decision.
Garg said silver prices also advanced on the back of improving sentiment among investors.
In the international markets, spot gold rose USD 84.74, or 2 per cent, to USD 4,325.43 per ounce, while silver gained strength by advancing more than 4 per cent to USD 64.17 per ounce.
Spot gold edged higher in the overseas markets to near USD 4,350 per ounce on Friday, while silver climbed over 4 per cent to around USD 64 an ounce, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
She said both metals were on course for their strongest weekly performance since January, supported by softer crude oil prices and a weak US dollar as hopes of a shipping arrangement through the Strait of Hormuz eased concerns over supply disruptions.
Chainwala further said renewed institutional demand remained supportive, with global gold exchange-traded funds recording inflows of 23.5 tonnes in July after two consecutive months of outflows.
Market participants are awaiting the US non-farm payrolls report later in the day, which is expected to provide fresh cues on the Federal Reserve’s interest rate outlook, she added.
