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Gold prices rise sharply today, silver rates jump

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Prices gold of 99.9% and 99.5% purities today added Rs 175 each at Rs 32,275 and Rs 32,125 per 10 gram, respectively

New Delhi: Gold prices in India regained some momentum today, tracking higher global rates and fresh buying by jewellers. Silver rates also firmed up in domestic markets today on increased offtake by industrial units and coin makers. Gold prices today jumped Rs 175 to Rs 32,275 per 10 gram at the bullion market while silver rates advanced by Rs 200 to Rs 38,000 per kg. In Delhi, gold of 99.9% and 99.5% purities added Rs 175 each at Rs 32,275 and Rs 32,125 per 10 gram, respectively. Gold prices had fallen Rs 130 on Saturday.

Sovereign, however, today traded flat at Rs 25,000 per piece of eight gram. Tracking gold, silver ready spurted by Rs 200 to Rs 38,000 per kg and weekly-based delivery by Rs 2 to Rs 37,496 per kg. Silver coins, however, held steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

In global markets, gold prices rose close to six-month highs on safe-haven demand. Concerns about a possible prolonged US government shutdown and global growth weighed on the dollar and equity markets, boosting the appeal of assets viewed as safer, such as gold.Spot gold rose 0.4% at $1,260.64 per ounce.

Some analysts remain positive on gold for 2019. “Gold is expected to play a key role in 2019 as a safe haven given the fears of further falls in stock markets and expectation for a more dovish US Federal Reserve,” said ActivTrades chief analyst Carlo Alberto De Casa. Lower interest rates reduce the opportunity cost of holding bullion and weigh on the dollar.

Gold, which is seen as safe investment during political and financial uncertainty, has risen about 9% from a 19-month low of $1,159.96 in mid-August. Gold has support at around $1,250, say analysts.

(With Agency Inputs)