After the fall in gold and silver prices, a rise was recorded again on Friday. In the national capital, the price of gold increased by Rs 500 to reach Rs 80,000. The precious metal with 99.9 percent purity closed at Rs 79,500 per 10 grams on Thursday. The price of gold with 99.5 percent purity increased from Rs 500 to Rs 79,600 per 10 grams. On Thursday it closed at Rs 79,100 per 10 grams. According to PTI News, silver also rose by Rs 800 to Rs 94,600 per kg, while its price was Rs 93,800 per kg the previous day.
Reason for price increase.
According to the news, the All India Bullion Association said that the rise in precious metal prices was due to new purchases by jewelers and local retailers for wedding festivals. Traders said demand from local jewelers has increased for the wedding season. Furthermore, due to the fall of the rupee against the US dollar, investors bet on this asset class as a safe investment, leading to a rise in the price of gold.
What was the price in the futures market?
Gold contracts for December delivery fell by Rs 198 to trade at Rs 77,213 per 10 gram in futures trading on the Multi Commodity Exchange (MCX). Jatin Trivedi, VP Research, Commodities and Currencies Analyst at LKP Securities, said gold remained weak amid the strength of the dollar index and the Federal Reserve (Fed) policy announcement, which is in line with expectations of a 0.25 percent rate cut. There were no new surprises to support gold prices as the Federal Reserve’s outlook and inflation moved closer to its 2 percent target.
How was the trend in the Asian market?
Profit accounting continued after Donald Trump’s election victory. Silver contracts for December delivery decreased by Rs 630, or 0.68 percent, to Rs 91,683 per kg. In Asian market hours, Comex gold futures were down $10 an ounce, or 0.37 percent, at 2,695. It reached $70 an ounce. Gold prices fell below the $2,700 level on Friday, according to commodity experts, as investors hope President-elect Donald Trump’s economic policies can boost growth and inflation.
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