Gold rises Rs 250 to Rs 72,800 per 10g; silver tumbles Rs 1,300

New Delhi, Aug 5 (PTI) Gold prices rose by Rs 250 to Rs 72,800 per 10 grams in the local market here on Monday amid increased demand from jewellers.

The precious metal settled lower at Rs 72,550 per 10 grams in the previous session on Saturday.

Extending its losses for the third straight day, silver prices tumbled by Rs 1,300 to Rs 84,200 per kg on decreased offtake by coin makers and industrial units, according to the All India Sarafa Association.

It had ended at Rs 85,500 per kg in the previous session.

In addition, gold of 99.5 per cent purity increased by Rs 250 to Rs 72,450 per 10 grams from the previous close of Rs 72,200 per 10 grams.

In the international markets, Comex gold is trading at USD 2,461.10 per ounce, down by USD 8.70 from the previous close.

“COMEX gold experienced a volatile session, plummeting sharply before recovering as traders assessed a severe stock sell-off and rising Middle East tensions,” Dilip Parmar, Research Analyst at HDFC Securities, said.

Silver was also quoted lower at USD 27.47 per ounce in New York.

Meanwhile, gold futures plunged Rs 309 or 0.44 per cent to trade at Rs 69,480 per 10 grams on the Multi Commodity Exchange (MCX). The most traded October contract of gold hit an intra-day low of Rs 69,453 per 10 grams.

Further, silver contracts for September delivery declined by Rs 2,719 or 3.3 per cent to Rs 79,774 per kg on the MCX.

“Gold prices opened strong in Comex. However, panic triggered by the Japanese Yen and the Bank of Japan has contributed to a sell-off in gold.

“With US interest rates still elevated, gold has encountered resistance on recent rises. A potential pre-emptive US interest rate cut could increase buying pressure in gold, especially since recent economic data from the US has not been supportive,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said.

As a result, the price range for gold is expected to be between Rs 69,000 and 71,000, with volatility likely in the sessions ahead, Trivedi added.