New Delhi, May 22 Gold prices in the national capital on Thursday rose by Rs 200 to Rs 98,650 per 10 grams on increased demand from local jewellers and stockists, according to the All India Sarafa Association.
Gold of 99.5 percent purity rose by Rs 200 to Rs 98,200 per 10 grams (inclusive of all taxes) on Thursday.
In contrast, silver prices in local markets rose by Rs 2,040 to Rs 1,01,200 per kg (inclusive of all taxes) on Thursday.
Strong global trends and rising tensions in the Middle East also supported local prices, the association said.
“Gold prices continued to rise as the US dollar remained under pressure following fresh concerns over economic stability,” said Chintan Mehta, chief executive officer, Abans Financial Services.
US President Donald Trump’s proposed budget, which includes significant tax cuts, is estimated to increase the national debt by more than USD 3 trillion. This has raised fears of financial instability and weakened confidence in US government bonds, Mehta said.
Meanwhile, spot gold fell 0.50 percent to USD 3,298.69 per ounce in the international markets. “Gold prices traded positive on sharp fall in US dollar index and fresh concerns over US debt sustainability.
Weak dollar and ongoing global geopolitical uncertainties have kept investors’ interest in gold as a safe-haven asset alive,” said Jatin Trivedi, VP Research Analyst, Commodities & Currencies at LKP Securities. “Gold continued to gain on Thursday on the back of safe-haven demand amid fresh tensions between the US and China which dampened investors’ interest in risky assets, leading to increased demand for safe-haven assets,” said Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities.
According to Kaynat Chainwala, AVP Commodity Research at Kotak Securities, market participants will await the release of key flash PMI data from major global economies including the US and the UK and US unemployment claims later in the day.
