New Delhi: Gold price rallied by Rs 950 to Rs 97,500 per 10 gram in the national capital on Tuesday amid firm trend in overseas markets, according to the All India Sarafa Association. The precious metal of 99.5 per cent purity jumped Rs 1,000 to Rs 97,100 per 10 gram.
On Monday, gold of 99.9 per cent and 99.5 per cent fell sharply by Rs 3,400 each to Rs 96,550 and Rs 96,100 per 10 grams, respectively.
Meanwhile, silver depreciated Rs 250 to Rs 99,450 per kg against the previous close of Rs 99,700 per kg.
“Gold prices have risen again after a sharp correction, as safe-haven demand eased following a pause in the US-China trade war,” Abans Financial Services’ Chief Executive Officer Chintan Mehta said.
The US agreed to cut tariffs on Chinese imports to 30 per cent from 145 per cent, while China reduced duties on US goods to 10 per cent from 125 per cent.
This tariff relief brought some calm to global markets, leading to a rally in equities and a pullback in gold over the past two days, Mehta added.
Globally, spot gold quoted higher at USD 3,253.38 per ounce.
“Gold fell over 3 per cent on Monday, lowest closing in nearly two weeks. However, the metal rebounded slightly on Tuesday, edging above USD 3,240 per ounce,” Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said.
The safe-haven demand emerged amid reports of Israeli airstrikes on Houthi rebel positions in Yemen, she said.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said market participants are closely awaiting the US Consumer Price Index (CPI) data later in the day.
The inflation print could influence the US Federal Reserve’s interest rate outlook and, in turn, affect gold’s trajectory, Trivedi added.
