Gold and silver prices rose again on Thursday due to strengthening trend in overseas markets. Rising demand from jewellery sellers became the main factor behind the rise in gold and silver prices. In the national capital Delhi, the price of gold rose by Rs 500 to Rs 74,100 per 10 grams. On Wednesday, the price of gold in the market closed at Rs 73,600 per 10 grams.
According to the All India Bullion Association, silver prices also rose by Rs 1,000 to close at Rs 84,600 per kg. There has been a surge in silver prices due to increased demand from industrial units and coin makers. In the previous trading session, silver had closed at Rs 83,600 per kg.
rising gold prices
There has also been a rise in the price of gold with 99.5 per cent purity in Delhi. Gold with 99.5 per cent purity rose by Rs 500 to Rs 73,750 per 10 grams, against Rs 73,250 per 10 grams in the previous trading session.
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Domestically, traders attributed the rise in gold prices to the strong trend in international markets. In view of the upcoming festive season, demand in the market increased, so its impact was also seen. Purchases by jewellers increased in Delhi.
On the external front, Comex gold rose 0.82 percent to $2,546.80 an ounce. Silver was also quoted at $29.07 an ounce on international markets.
When interest rates fell, gold prices rose
Gold prices typically rise during economic uncertainty and interest rate cuts. Saumil Gandhi, senior commodity analyst at HDFC Securities, said bullion prices rose on Thursday after weaker-than-expected US jobs data raised expectations of a sharp interest rate cut. This provided support to gold.
According to Manav Modi, senior commodity research analyst at Motilal Oswal Financial Securities, after the jobs data, market participants are expecting an interest rate cut by the Federal Reserve on September 18.
