NEW DELHI, March 17: Precious metal prices rebounded by up to 2 per cent, with silver gaining by Rs 6,000 to Rs 2.62 lakh per kilogram, and gold rose to Rs 1.61 lakh per 10 grams in the national capital on Tuesday, according to the All India Sarafa Association.
The white metal increased by Rs 6,000, or 2.34 per cent, to Rs 2,62,500 per kg (inclusive of all taxes).
Gold of 99.9 per cent purity in the bullion market also snapped its three-day losing streak, rising by Rs 1,050, or nearly 1 per cent, to Rs 1,61,300 per 10 grams (inclusive of all taxes).
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Analysts said the rebound in bullion prices was supported by safe-haven demand amid geopolitical tensions, even as global cues remained subdued.
In the domestic markets, a softening rupee has helped spot gold prices decouple from global weakness, though one can expect further consolidation within a wide range until the Fed provides clear guidance, Dilip Parmar, Senior Research Analyst, HDFC Securities, said.
He added that precious metals are currently caught in a complex macro-trap, where conflicting factors are influencing price movements.
“The escalating conflict in the Gulf region typically triggers a rush to safety, the resulting oil price surge is fuelling inflation fears that may force central banks to stay hawkish for longer,” Parmar said.
In the international market, spot gold was trading marginally lower at USD 5,003.68 per ounce, and silver also went lower by 0.35 per cent, to USD 80.46 per ounce.
“Gold traded near USD 5,000 per ounce, but continues to witness range-bound volatility as markets remain cautious ahead of the US Fed policy decision due on Wednesday late evening,” Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.
He added that expectations from the US Federal Reserve remain subdued, with little scope for dovish commentary, amid elevated crude oil prices, keeping inflationary pressures intact.
Higher energy prices may delay rate cuts, thereby limiting the upside in gold prices, Trivedi said. According to analysts, investors are closely tracking the outcome of the Federal Open Market Committee’s policy meeting for further cues on the direction of policy outlook and bullion prices amid ongoing geopolitical uncertainties and volatile energy markets. (PTI)
