NEW DELHI — Gold and silver prices rebounded on Monday in the national capital mainly on the back of ongoing wedding season buying by jewellers and retailers as well as strong global trend, according to the All India Sarafa Association.
Snapping a four-day losing streak, gold of 99.9 per cent purity rose by INR 400 to INR 77,450 per 10 grams in the local markets. The precious metal had closed at Rs 77,050 per 10 grams on Thursday.
Silver also climbed INR 1,810 to reclaim the INR 92,000 per kg-mark against the previous close of INR 90,190 per kg on Thursday.
Price of gold of 99.5 per cent purity jumped INR 400 to INR 77,050 per 10 grams. The yellow metal had settled at INR 76,650 per 10 grams.
Traders said besides wedding season demand from jewellers and retailers, a strong global trend for gold influenced the precious metal prices.
On Friday, the local bullion markets were closed on account of Guru Nanak Jayanti.
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In futures trade on the MCX, gold contracts for December delivery jumped INR 621 or 0.84 per cent to trade at INR 74,567 per 10 grams. During the day, the precious metal had climbed INR 732 or 0.99 per cent to INR 74,678 per 10 grams on the exchange.
"Gold traded strongly positive due to heightened geopolitical tensions between Russia and Ukraine. This geopolitical risk bolstered gold prices as investors turned to safe-haven assets," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.
Silver contracts for December delivery also bounced by INR 879 or 0.99 per cent to INR 89,300 per kg on the Multi Commodity Exchange (MCX).
In the Asian trading hours, Comex gold futures rose USD 25.20 per ounce or 0.98 per cent to USD 2,595.30 per ounce.
"Geopolitical developments over the weekend fuelled some haven flows, allowing the precious metal to start trading on a positive note," Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities, said.
Meanwhile, retail demand in India is likely to improve due to the ongoing wedding season, Gandhi said.
According to Rahul Kalantri, VP Commodities, Mehta Equities Ltd, last week, gold and silver prices extended their decline, reaching two-month lows in international markets.
This sharp drop was primarily driven by the strong performance of Bitcoin and the US dollar following Donald Trump's victory in the US presidential election, reducing the safe-haven appeal of precious metals, Kalantri said.
Silver traded 1.23 per cent higher at USD 30.81 per ounce in the international markets.
"Focus this week will be on the preliminary Manufacturing and Services PMI data from major economies along with Fed officials comments," Manav Modi, analyst, Commodity Research, Motilal Oswal Financial Services Ltd, said.
The commentary from the officials will chart a path for the policy interest rates.