New Delhi- Gold and silver prices rebounded sharply on Monday after falling for three straight sessions, with the precious metal jumping Rs 220 to Rs 72,820 per 10 grams in the national capital, tracking a strong trend in the overseas market due to escalating tensions in the Middle East.
Gold had closed at Rs 72,600 per 10 grams in the previous session on Friday, according to HDFC Securities.
Silver prices also bounced Rs 1,050 to Rs 92,850 per kg. In the previous session, it had finished at Rs 91,800 per kg.
“Spot gold prices (24 carats) in the Delhi markets are trading at Rs 72,820 per 10 grams, up by Rs 220 against the previous close,” Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.
In the overseas markets, spot gold at Comex was trading at USD 2,344 per ounce, up USD 9 from the previous close.
Gold resumed trading on a positive note, supported by soft US dollar, and geopolitical tensions in the Middle East increased after Israel carried out airstrikes in Rafah, leading to an increase in safe-haven demand for the yellow metal, Gandhi said.
Additionally, silver also traded higher at USD 30.75 per ounce.
“Gold prices are stuck in a range, as the US and the UK markets are closed on Monday.
“However, volatility is expected to remain high as focus will be on inflation numbers from Germany, Eurozone, and the US due later in the week and could give some clues on the rate cuts by European Central Bank (ECB) and the US Federal Reserve,” Pranav Mer, VP of Research (Commodity & Currency) at BlinkX and JM Financial Services, said.
Meanwhile, in the futures trade on the Multi Commodity Exchange (MCX), gold bounced Rs 462 to trade at Rs 71,718 per 10 grams. The most-traded June contract of gold hit an intra-day high of Rs 71,741 per 10 grams.
Further, silver contracts for July delivery were also trading higher by Rs 1,527, or 1.69 per cent, to Rs 92,075 per kg on the exchange.
According to market experts, gold prices recovered some of the losses from last week, rising slightly to USD 2,346.60 in Asian trading on Monday.
Traders will also take more cues from the first reading of US GDP for the first quarter on Thursday and the Personal Consumption Expenditures (PCE) price index data, due on Friday which will further provide more direction on the precious metal prices, experts said.
The stronger-than-expected data might boost the greenback and weigh on the gold prices. (PTI)