New Delhi: Gold prices in the national capital on Tuesday rose by Rs 600 to Rs 1,00,770 per 10 grams, supported by a weak rupee and strong global trends, according to the All India Sarafa Association.
The precious metal of 99.9 percent purity had closed at Rs 1,00,170 per 10 grams on Monday.
Gold of 99.5 percent purity rose by Rs 500 to Rs 1,00,400 per 10 grams (inclusive of all taxes), as against the last close of Rs 99,900 per 10 grams.
Silver prices rose by Rs 3,000 to an all-time high of Rs 1,18,000 per kg (inclusive of all taxes). The white metal had closed at Rs 1,15,000 per kg on Monday, according to the Sarafa Association.
HDFC Securities Senior Analyst (Commodities) Saumil Gandhi said, “Gold prices rose on Tuesday as investors looked for traditional safe-haven investments after US President Donald Trump’s decision to remove Federal Reserve Governor Lisa Cook.” This decision had raised concerns about the independence of the central bank.
Gandhi further said that President Trump’s move has put additional pressure on the Fed leadership to cut interest rates soon, which is usually beneficial for non-yielding gold.
The rupee fell 12 paise to close at 87.68 (provisional) against the US dollar on Tuesday due to weak domestic markets after the US issued a draft notice on its plan to impose an additional duty of 25 percent on Indian products.
Globally, spot gold was trading 0.37 percent higher at $3,378.37 an ounce in New York.
“Spot gold gained as the dollar weakened again amid concerns over the independence of the US central bank after President Trump sacked Fed Governor Lisa Cook,” said Kaynat Chainwala, AVP, Commodity Research, Kotak Securities.
Spot silver, however, fell 0.21 percent to $38.48 an ounce.
“Uncertainty over tariffs is adding further support. Trump’s move to impose an additional 25 percent duty on India from August 27 and rising tensions in the Russia-Ukraine war have made traders skeptical about any meaningful progress in the peace talks,” said Chintan Mehta, CEO, Abans Financial Services.
Meanwhile, central banks, especially those of China and Turkey, continue to build their gold reserves, adding to the upside. Mehta said investors will focus on key US macroeconomic data, including unemployment claims and GDP revisions, to assess the Fed’s next steps for the interest rate cycle.
