Gold jumps Rs 530, silver bounces Rs 1,200 on firm global cues

New Delhi, Jul 4 (PTI) Gold prices jumped by Rs 530 to Rs 73,080 per 10 grams in the national capital on Thursday tracking a bullish trend in the international markets, according to HDFC Securities.

The yellow metal had settled at Rs 72,550 per 10 grams in the previous trade.

Silver prices also leapt Rs 1,200 to Rs 92,500 per kg. In the previous session, it closed at Rs 91,300 per kg.

“In Delhi markets, spot gold prices (24 carats) are trading at Rs 73,080 per 10 grams, up by Rs 530 from the previous close,” Saumil Gandhi, Research Analyst at HDFC Securities, said.

In the global markets, spot gold at Comex was trading at USD 2,355 per ounce, up USD 16 from the previous close.

Additionally, silver was quoted higher at USD 30.25 per ounce against USD 29.80 per ounce in the previous session.

“Gold prices rose more than 1 per cent to a nearly two-week high while silver was up by more than 2 per cent, on the back weak US economic data which increased rate cut bets by Fed, fall in the dollar index and rally in industrial metals,” Manav Modi, Senior Analyst – Commodity Research at Motilal Oswal Financial Services Ltd, said.

In the FOMC meeting minutes, US Federal Reserve Governor Powell reiterated that inflation concerns still exist and the Fed is in no hurry to raise rates.

Market analysts said that the US Fed is in wait-and-watch mode as it awaits data for a few more months before it makes a call for interest rate path ahead.

“Despite these comments, the market now sees a 66 per cent chance of the Fed cutting interest rates in September,” Modi said.

The US market is closed on Thursday for the Independence Day holiday.

Focus will now shift to the nonfarm payrolls report due on Friday, for more clarity on US rate cuts, analysts said.

Gold is expected to remain buoyant amid increased bets on a potential Federal Reserve interest rate cut in September, following signs of a softening U.S. labor market and economic slowdown, Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies at Angel One, said.