NEW DELHI, September 3: Gold prices in the national capital experienced a significant rebound on Thursday, breaking a six-session losing streak. The precious metal surged by Rs 3,400 to reach Rs 1,59,500 per 10 grams, mirroring a firm trend observed in international markets.
Information was available with The Chenab Times that the yellow metal, specifically 99.9 per cent purity, climbed Rs 3,400 from its previous closing price of Rs 1,56,100 per 10 grams. This upward movement was also seen in silver, which gained Rs 5,000 to trade at Rs 2,40,500 per kilogram, inclusive of all taxes. The white metal had concluded the prior trading session at Rs 2,35,500 per kilogram.
Market analysts attributed the recovery in both gold and silver to a confluence of factors, including easing US Treasury yields from recent highs and a renewed demand for safe-haven assets driven by geopolitical tensions. Gaurav Garg, Head of Research at brokerage platform Lemonn, noted that these elements contributed to the upward momentum in precious metals.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, highlighted gold’s inherent sensitivity to shifts in expectations surrounding US monetary policy. He explained that weaker-than-expected private employment data released recently challenged the hawkish stance of the Federal Reserve, leading to a decrease in the dollar’s value and a dip in Treasury yields.
In global markets, spot gold saw an increase of USD 55.76, or 1.27 per cent, reaching USD 4,443.93 per ounce. Silver also advanced, gaining nearly 1 per cent to trade at USD 65.77 per ounce. This international uptrend provided further support to domestic price movements.
Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex, observed that gold recovered to approximately USD 4,440 after touching a one-month low. Similarly, silver bounced back from its two-week lows, with a weaker dollar playing a role in the resurgence. This recovery followed four consecutive sessions of price declines, as traders reassessed the likelihood of a September Federal Reserve rate hike ahead of crucial US jobs data.
Looking ahead, Gandhi cautioned that the near-term outlook for precious metals remains subject to uncertainty, particularly pending the release of labor market data. He suggested that weaker employment figures could lead to a further decline in the dollar and consequently support gold prices. Conversely, stronger data or hawkish signals from the Federal Reserve might revive rate-hike expectations, potentially exerting downward pressure on bullion prices.
The Chenab Times News Desk