New Delhi: Gold prices staged a sharp recovery in the national capital, rising by ₹1,600 after a recent sell-off as easing crude oil prices reduced immediate inflation concerns.
Gold of 99.9% purity climbed to ₹1,56,600 per 10 grams, inclusive of taxes, according to local bullion traders. The precious metal had closed at ₹1,55,000 per 10 grams in the previous session.
Lower oil prices, along with a decline in the US dollar and Treasury yields, encouraged investors to return to gold despite the US Federal Reserve’s latest interest rate increase.
Silver price jumps ₹5,000
Silver recorded a stronger rise, gaining ₹5,000 to reach ₹2,47,000 per kilogram, inclusive of taxes.
The white metal had remained unchanged at ₹2,42,000 per kg during the previous trading session.
Market analysts said silver outperformed gold as both precious metals recovered from recent losses. However, elevated bond yields and a firm US dollar limited the overall upside in bullion prices.
Global bullion markets rise
The recovery in India tracked gains across international bullion markets. Spot gold advanced $50.96, or 1.17%, to $4,392.78 per ounce.
International silver prices jumped 3.10% to $67.21 per ounce, reflecting stronger investor demand.
Gold-backed exchange-traded funds recorded net inflows for the eighth consecutive day. Total global ETF holdings increased to 100.39 million ounces, representing a year-to-date rise of 1.44 million ounces.
Crude oil retreat supports sentiment
Oil prices declined for a third consecutive session to around $101 per barrel. Expectations of restored Saudi Arabian supply and the use of alternative shipping routes reduced immediate concerns about supply disruptions.
Falling crude oil prices helped offset some concerns arising from the Federal Reserve’s hawkish monetary policy stance.
However, continuing geopolitical tensions in West Asia remain an important risk for commodities. Investors will closely track crude prices, the dollar, Treasury yields and further developments in the region for direction in gold and silver markets.
