Gold Surges Rs 550 To Reach Rs 71,600 Per 10 Grams

Gold prices surged by Rs 550 on Tuesday, to reach Rs 71,600 per 10 grams in the national capital, driven by robust demand from jewellers and positive global trends. In the previous trade, the precious metal had closed at Rs 71,050.

Prices of silver remained unchanged at Rs 84,500 per kg on Tuesday, according to the All India Sarafa Association.

Gold with 99.5% purity also jumped by Rs 550 to Rs 71,250 per 10 grams from the previous close of Rs 70,700.

Traders attributed the increase in gold prices to heightened demand from local jewellers and a strong trend in international markets.

Globally, Comex gold is trading higher at $2,432.90 per ounce, up by $7.40 per ounce from the previous close.

Market experts said that gold prices are stuck in a range, ahead of policy meeting outcomes by the Bank of Japan and the US central bank.

"Gold/commodities broadly are stuck in a range so far in the session, amid caution ahead of the key event i.e. the policy meeting outcome from Bank of Japan and the US Federal Reserve tomorrow, and the US employment data later in the week," Pranav Mer, vice-president of commodity and currency research at BlinkX and JM Financial, said.

In the international markets, Comex silver rose 0.27% to $27.94 per ounce.

"The Federal Reserve is expected to leave interest rates steady on Wednesday, but all eyes will be on any signals of a rate cut in September," said Saumil Gandhi, senior commodities analyst at HDFC Securities.

In a report on Tuesday, the World Gold Council said that India's gold demand declined 5% to 149.7 tonne during the June quarter, due to record-high prices.

"This can be attributed to record-high gold prices impacting affordability and causing a slowdown in consumer purchases. However, the overall value of demand remained strong, increasing by 14%, highlighting gold's enduring value for Indian consumers," said Sachin Jain, chief executive officer of WGC Regional in India.

(With inputs from PTI)