Gold prices in Delhi rebounded amid a softer US dollar, rising geopolitical tensions, and positive global cues, with domestic rates varying across reports.
Gold prices in Delhi recovered on Monday as a softer US dollar and firmer overseas cues improved sentiment in the bullion market, even as domestic quotes varied across reports. The Free Press Journal said the metal of 99.9 per cent purity gained Rs 600 to Rs 1,56,800 per 10 grams, while Moneycontrol and DT Next reported a larger rise of Rs 1,500 to Rs 1,60,300 per 10 grams. Silver was described as steady in the Delhi market in both accounts.
According to HDFC Securities analyst Saumil Gandhi, the metal advanced as expectations of further aggressive rate increases by the US Federal Reserve eased. Recent American data showing moderate inflation, weaker jobs conditions and softer retail sales have also weighed on the dollar, which tends to support gold by making it cheaper for buyers using other currencies.
Global prices were also higher in the Free Press Journal account, with spot gold up 0.48% at $4,397.59 an ounce and silver rising more than 1% to $65.58 an ounce. Praveen Singh of Mirae Asset ShareKhan said the outlook remained constructive because of dollar weakness and limited room for crude oil to move higher.
Geopolitics added another layer of support. Singh said President Donald Trump was preparing more economic sanctions against Iran, while continuing uncertainty around Iranian ports kept traders cautious. Jateen Trivedi of LKP Securities said investors would now watch the latest minutes from the Federal Open Market Committee for clues on the Fed’s next move, which could set the tone for bullion in the near term.
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