Gold prices in the national capital experienced a significant rebound on Friday, soaring by Rs 1,080 to reach Rs 96,800 per 10 grams. This surge, according to the All India Sarafa Association, was fueled by renewed purchasing activity from jewellers, bolstered by positive trends in overseas markets.
This upward movement followed a sharp decline on Thursday, where gold (99.9% purity) had plummeted by Rs 2,830 to Rs 95,720 per 10 grams. Similarly, gold with 99.5% purity saw an increase of Rs 180 to Rs 96,350 per 10 grams, partially recovering from the previous session’s drop of Rs 1,930 to Rs 96,170 per 10 grams.
Market analysts attributed the gold rally to fresh demand from local jewellers, aligning with a strong performance in international markets.
Silver also witnessed a substantial gain, jumping by Rs 1,600 to settle at Rs 97,100 per kg on Friday. This followed a considerable fall of Rs 2,500 to Rs 95,500 per kg in the preceding trading session. It’s worth noting that local markets had a delayed opening on Thursday due to ‘International Labour Day’, with trading commencing only in the evening.
Globally, spot gold climbed by USD 23.10, or 0.71 percent, to USD 3,262.30 per ounce.
Jateen Trivedi, VP Research Analyst for Commodity and Currency at LKP Securities, commented that “Gold prices rebounded strongly with sentiment stabilising amid persistent ambiguity over US-led trade deals.” He further explained that the uncertainty and fluctuating positions of the US regarding ongoing trade discussions have prompted market participants to cover their short positions in gold, generating new upward momentum. Trivedi also noted a gradual return of safe-haven demand as a consequence.
Spot silver also experienced an uptick in the global market, rising by 0.23 percent to USD 32.49 per ounce on Friday.
Commodities experts indicated that market attention is now focused on the upcoming release of the US Nonfarm Payrolls (NFP) data later in the day, which is anticipated to provide further impetus to gold prices.
