Gold prices rally to Rs 72,250 per 10 grams on global surge

Gold prices rally: Gold prices in the national capital surged by Rs 230 to reach Rs 72,250 per 10 grams on Monday, buoyed by a notable uptick in international rates, as reported by HDFC Securities.

In the preceding session, the precious metal had settled at Rs 72,020 per 10 grams. Concurrently, silver prices also witnessed a substantial rise, jumping by Rs 700 to Rs 84,300 per kg from the previous close of Rs 83,600 per kg.

Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, attributed the uptrend in spot gold prices to positive trends observed in overseas markets, with 24-carat gold trading at Rs 72,250 per 10 grams, up by Rs 230.

In global markets, spot gold at Comex registered at $2,312 per ounce, marking an increase of $11 from the previous close. The positive momentum in gold prices was fueled by weaker-than-expected US job market reports, elevating expectations of a potential interest rate cut by the US Federal Reserve in September.

Gandhi highlighted the adverse impact on the US dollar due to these developments, leading to a rebound in gold prices above the $2,300 level. Concurrently, silver also saw an upswing, trading at $27.05 per ounce compared to the previous session's closing at $26.55 per ounce.

On the Multi Commodity Exchange (MCX), gold futures surged by Rs 562 to trade at Rs 71,230 per 10 grams, with the June contract hitting an intra-day high of Rs 71,297 per 10 grams. Additionally, silver contracts for July delivery witnessed a rise of Rs 1,508, or 1.86 per cent, reaching Rs 82,551 per kg on the bourse.

Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, projected a trading range of Rs 70,000 to Rs 72,500 for gold in the near term, citing factors such as renewed conflicts in the Middle East and the impact of weak US job data.

(with PTI inputs)