New Delhi: Gold and silver prices rebounded sharply on Tuesday after falling to multi-month lows in the previous session on the back of value buying at lower levels, analysts said. Gold futures for delivery in October rose above ₹ 46,000 level after hitting low of ₹ 45,886 per 10 grams in the previous session on the Multi Commodity Exchange (MCX). In intraday deals, gold futures rose as much as 0.5 per cent to hit day’s high of ₹ 46,112 per 10 grams.
In spot market, fine gold with purity of 24 carat was priced at ₹ 46.530 per 10 grams, 22 carat gold was being sold at ₹ 44,940, 18 carat gold was being retailed at ₹ 37,220 and 14 carat gold was priced at ₹ 30,940 per 10 grams, according to India Bullion & Jewellers Association.
“COMEX gold trades 0.5 per cent higher near $1735/oz after a 2.1 per cent decline yesterday when it tested March lows. Gold inched up on dip buying and is supported by increased geopolitical tensions, rising virus cases, rising inflationary pressure and concerns about Chinese economy. However, weighing on price is firmness in the US dollar and weaker investor interest. The general bias for gold is on the downside amid increased debate about Fed’s monetary tightening however , the recent sell-off seems overdone and some recovery is possible,” Ravindra Rao, Head Commodity Research at Kotak Securities said.
Silver prices also rebounded from multi-month lows as it moved above ₹ 63,000 per kilogram after hitting low of ₹ 62,637 per kilogram in the previous session. Silver futures for delivery in September rose 1 per cent to hit an intraday high of 63,239. In spot market silver was priced at ₹ 64,16 per kilogram.