New Delhi, Oct 19: Gold prices climbed Rs 400 to Rs 1.5 lakh per 10 grams in Delhi on Monday as improving festive demand and firm global trends lent support to the precious metal ahead of Dussehra.
The 99.9 per cent pure metal gained Rs 400 to Rs 1,50,300 per 10 grams, inclusive of all taxes, from Friday’s closing level of Rs 1,49,900 per 10 grams, according to local traders.
Silver, however, remained steady for the second straight session at Rs 2.15 lakh per kilogram.
“Gold prices moved higher in the domestic market on Monday, supported by a positive trend in overseas markets and improving retail demand as the festive season begins,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
He said physical demand had improved, with gold trading at a premium last week for the first time in more than three months as lower prices encouraged jewellery purchases.
“Retail demand is expected to strengthen further ahead of Diwali, India’s biggest festival, supporting the domestic gold market,” he added.
Bullion markets will remain closed on Tuesday on account of Dussehra.
Vikas Gupta, smallcase manager and CEO of Omniscience Capital, said the festive and wedding seasons typically drive gold prices higher, though the likelihood of US Federal Reserve rate hikes could keep global rates under pressure.
“Domestic gold prices are likely to see a small festive season surge but remain stable post that,” Gupta said.
In the global market, spot gold was traded marginally at USD 4,175.57 per ounce, while silver rose over 1 per cent to USD 57.63 per ounce.
“Gold and silver are trading higher as easing crude oil prices and declining US Treasury yields help reduce inflation concerns and support precious metals,” said Gaurav Garg, Head of Research at brokerage platform Lemonn.
He added that expectations of additional global fuel supply following the US easing certain restrictions on Russian oil-related trade could weigh on crude prices, while geopolitical tensions and risks to shipping through the Strait of Hormuz remained concerns.
