Gold rises Rs 100; silver remains flat

New Delhi, Aug 30 (PTI) Gold prices rose Rs 100 to Rs 74,350 per 10 grams in the national capital on Friday due to fresh demand by local jewellers.

The yellow metal of 99.9 per cent purity had closed at Rs 74,250 per 10 grams in the previous trade.

Silver prices, however, remained flat at Rs 87,200 per kilogram on Friday, according to the All India Sarafa Association.

Additionally, gold of 99.5 per cent purity edged up Rs 100 to Rs 74,000 per 10 grams from the previous close of Rs 73,900 per 10 grams.

Traders attributed the rise in yellow metal prices to a pick-up in demand by local jewellers and retailers in the domestic market.

Globally, Comex gold is trading at USD 2,557.10 per ounce, down by USD 3.20 per ounce or 0.12 per cent.

“Gold prices traded in a narrow range, as the market is expecting the US Federal Reserve to cut interest rates in September, while on the other hand, better-than-expected data US is capping gains for the same on a higher side,” Manav Modi, Senior Analyst of Commodity Research at Motilal Oswal Financial Services Ltd, said.

Last week, US Fed Chair Jerome Powell signalled that the interest rate cuts were imminent in a nod to concerns over the jobs market.

Geo-political tensions also continue to increase and support safe-haven buying, Modi added.

Silver was also marginally down at USD 29.93 per ounce in the international markets.

“The bets for any bigger cuts were trimmed after data showed the US economy grew at a faster pace in the last quarter, while jobless claims were down again.

“Along with the US Fed focus will also be on the European Central Bank rate decision next month, as inflation eases futures within Eurozone countries,” Pranav Mer, Vice-President of Research (Commodity & Currency) at BlinkX and JM Financial, said.

Traders will focus on the PCE inflation data to be released later on Friday, which is the Fed’s preferred data in deciding interest rates and can provide further direction for the bullion prices, Mer added.