Gold climbs Rs 200; silver jumps Rs 700

New Delhi, May 7 (PTI) Extending gains for second straight session, gold prices on Tuesday climbed by Rs 200 to Rs 72,450 per 10 grams in the national capital in line with firm trends in the global markets, according to HDFC Securities.

In the previous session, the precious metal had closed at Rs 72,250 per 10 grams. Silver prices also jumped by Rs 700 to Rs 85,000 per kg. It had settled at Rs 84,300 per kg in the previous session.

“Spot gold prices (24 carats) in the Delhi markets are trading at Rs 72,450 per 10 grams, up by Rs 200, taking positive cues from the overseas markets,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In the international markets, spot gold at Comex was trading at USD 2,319 per ounce, up by USD 7 from the previous close.

“Gold moved higher on indications that the US Federal Reserve could cut interest rates this year. The dovish remarks from the US policymakers have boosted hopes for the interest rate cuts.

“Furthermore, rising geopolitical concerns in the Middle East also provided support for gold. Israel’s rejection of a Hamas-backed cease-fire proposal to end the fighting in Gaza sparked the demand for safe haven assets,” Gandhi said.

Silver was also marginally up at USD 27.25 per ounce. It had ended at USD 27.05 per ounce in the previous session.

“Gold prices are stuck in a range after gaining 1 per cent on Monday, supported by a weaker US dollar after the recent US data which have shown signs of slowdown in the economic activity, leading to rising bets for an early rate cut by the US Fed,” Pranav Mer, VP – Research (Commodity & Currency) at BlinkX and JM Financial, said.