Gold rises Rs 50 to Rs 75,150 per 10 grams; silver slumps Rs 500

New Delhi, Jul 15 (PTI) Gold prices rose Rs 50 to Rs 75,150 per 10 grams in the local market on Monday amid fresh buying by jewellers even as the precious metal rates fall in the overseas markets.

According to the All India Sarafa Association, the yellow metal prices closed at Rs 75,100 per 10 grams on Saturday.

Gold prices saw a rise in domestic demand. However, a weak trend in the global markets capped the gains, the association said.

Additionally, silver prices slumped Rs 500 to Rs 94,000 per kg. It had settled at Rs 94,500 per kg in the previous session.

Globally, spot gold was trading at USD 2,407.92 per ounce, down by USD 3.51 per ounce.

“Gold prices witnessed sharp volatility but managed to stay above USD 2,400 which it hit post the US Consumer Price Index (CPI) data last week. After the data release, it showed a somewhat lower than anticipated reading, driving up hopes that cooling inflation will give the Fed more confidence to begin cutting rates.

“Update regarding US Presidential election could increase volatility in the market, along with geopolitical tensions,” Manav Modi, Senior Analyst of Commodity Research at Motilal Oswal Financial Services Ltd, said.

Further, traders will focus on US Federal Reserve Chair Jerome Powell’s speech on Monday, he said.

In addition, silver was also down at USD 30.69 per ounce.

“Gold and most other commodities are trading in the negative territory, weighed by a stronger US dollar against major currencies amid a rise in political uncertainty in the US over the weekend.

“However, downside in the bullion looks limited and we expect some safe-have demand to pick up in the coming sessions,” Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services, said.

Market participants this week also keep an eye on important data points like US Retail Sales, Industrial production and a few housing numbers which could provide clarity on overall economic health and the Fed’s interest path ahead, Modi added.