Gold rises on jewellers' buying, positive overseas trend

NewsDrum Desk
New Update

New Delhi, Jul 11 (PTI) Gold price rose Rs 50 to Rs 75,100 per 10 grams in the national capital on Thursday driven by jewellers' buying and a firm trend in the international markets, according to All India Sarafa Association.

The precious metal had settled at Rs 75,050 per 10 grams on Wednesday.

Silver prices also climbed by Rs 100 to Rs 94,500 per kg. It had closed at Rs 94,400 per kg in the previous session.

In sarafa markets, the yellow metal was trading at Rs 75,100 per 10 grams, up by Rs 50 against the previous close, the association said.

Traders said gold rallied due to fresh demand from local jewellers and a firm trend in overseas markets.

In the global markets, spot gold was trading higher at USD 2,389.20 per ounce, up by USD 9.50 per ounce.

Gold prices firmed for a third consecutive session with investors awaiting US inflation data due later in the day for more insights on the Federal Reserve's interest rate path, Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd (MOFSL), said.

US Fed Chair Jerome Powell on Wednesday mentioned that the US central bank would make interest rate decisions "when and as" they were needed. He told House members that "more good data" would build the case for a rate cut.

Addressing the lawmakers in Washington on Wednesday, Powell said he has confidence that inflation is headed downwards, however, stressed that the Fed has more work to do.

Investors are waiting for the June Consumer Price Index (CPI) data to be release later on Thursday, and the Producer Price Index (PPI) report on Friday, which could add clarity to the Fed's monetary policy path ahead, Modi added.

Silver was also marginally up at USD 31.32 an ounce in New York.

"Gold continues to trade positive, supported by weakness in the US dollar and a dip in treasury yields after the Fed chair's comments on inflation and interest rates.

"However, prices are stuck in a range so far in the session amid caution ahead of the CPI data for clarity of the US Fed's easing trajectory," Pranav Mer, Vice President of Research (Commodity & Currency) at BlinkX and JM Financial, said.

According to market experts, the precious metal continues to rise on Thursday as data comes to light that indicates central banks globally are still hoarding gold in spite of the revelation that the People's Bank of China stopped buying the metal for two months in June. PTI HG HVA