New Delhi, May 12: Gold prices climbed Rs 1,500 to Rs 1.56 lakh per 10 grams in the national capital on Tuesday, and silver soared more than 4 per cent to Rs 2.77 lakh per kilogram, mainly due to a sharp fall in the rupee against the US dollar and firm domestic sentiment amid persistent geopolitical tensions.
Gold rises nearly 1 per cent in domestic market
According to the All India Sarafa Association, gold of 99.9 per cent purity increased by Rs 1,500, or nearly 1 per cent, to Rs 1.56 lakh per 10 grams (inclusive of all taxes) from Monday's closing level of Rs 1.55 lakh per 10 grams.
"Gold traded with gains in the domestic market, supported by a weaker Indian rupee and steady sentiment," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
The rupee depreciated 35 paise to close at an all-time low of 95.63 (provisional) against the US dollar on Tuesday, continuing to provide strong support to domestic gold prices, he added.
Silver surges over 4 per cent
Silver prices also advanced by Rs 12,000, or 4.53 per cent, to Rs 2.77 lakh per kg (inclusive of all taxes). The white metal had settled at Rs 2.65 lakh per kg in the preceding session, as per the association.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, said gold and silver prices experienced an uptick on Tuesday as investors navigated the complex landscape of Washington and Tehran relations while awaiting key US inflation data.
Bullion weakens in overseas markets
Meanwhile, spot gold slipped USD 42.33, or 1 per cent, to USD 4,692.64 per ounce, while silver fell 3.04 per cent to USD 83.49 per ounce in the overseas markets.
Brokerage firm Kotak Securities said spot gold retreated from a three-week high to trade near USD 4,700 per ounce in international markets, and spot silver slipped below USD 85, pressured by a firm dollar and rising Treasury bond yields.
Geopolitical tensions keep market sentiment cautious
Bullion market sentiment turned cautious after US President Donald Trump said the Iran ceasefire was "on life support," following Tehran's rejection of Washington's latest peace proposal, keeping geopolitical tensions elevated and crude oil prices higher.
Also Watch:
"Going forward, persistent geopolitical risks and inflation uncertainty remain supportive for bullion, while elevated bond yields, stronger dollar momentum, and hawkish Federal Reserve expectations continue to cap upside potential in the near term," the brokerage firm said.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
