NEW DELHI: Bullion prices rebounded after two days of sharp fall with silver logging its steepest single-day gain of Rs 5,200 to hit Rs 95,800 per kg on Wednesday amid strong global trends and buying rush from local jewellers. Gold of 99.9 per cent purity climbed Rs 650 to Rs 78,800 per 10 grams in the national capital on Wednesday, according to the All India Sarafa Association.
The yellow metal had lost Rs 2,250 in the previous two straight sessions. It ended at Rs 78,150 per 10 grams on Tuesday.
Price of gold of 99.5 per cent purity jumped Rs 950 to Rs 78,700 per 10 grams on Wednesday.
Silver saw its steepest single-day jump of Rs 5,200 and regained the Rs 95,000 per kg level after a gap of two-weeks in the national capital. Earlier, the steepest one-day rise in silver price was recorded on October 21 when it had gained Rs 5,000.
The white metal had plunged Rs 2,700 in the past two days and ended Tuesday’s session at Rs 90,600 per kg.
Traders attributed the increase in precious metal rates to volatile geopolitical situation in the Middle East as well as the rising consumption in industrial and wearable segments in the domestic market.
In futures trade on the MCX, gold contracts for December delivery jumped Rs 702 or 0.93 per cent to trade at Rs 75,913 per 10 grams.
“Gold traded with strength as markets continued to factor in geopolitical tensions and dollar volatility. While the broader bullish trend in gold remains intact, short-term uncertainty persists.
“At Rs 75,900 on MCX, gold is slightly off its peak but significantly above the Rs 67,500 low seen during the Budget week,” Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
Silver futures contract for December delivery rose Rs 280 or 0.32 per cent to Rs 88,530 per kg on Wednesday against the previous close of Rs 88,250 per kg.
Globally, Comex gold futures advanced $27 per ounce or 1.02 per cent to $2,673.30 per ounce.
“Gold edged higher on Wednesday as geopolitical risks and President-elect Donald Trump’s tariff plans drove haven flows back into gold and helped to recover some lost ground,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Furthermore, a pullback in the US dollar and treasury yields also lent support to gold prices, Gandhi stated.
Silver quoted 0.33 per cent higher at $30.94 per ounce in the Asian market hours.
“Gold has risen to $2,640 per ounce as the market shifts focus to key macroeconomic data releases, including the PCE Price Index, Q3 GDP revisions, and weekly jobless claims, ahead of Thursday’s Thanksgiving holiday,” Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.
According to Abans Holdings’ Chief Executive Officer Chintan Mehta, markets will also keep a close watch on any escalations in the Russia-Ukraine conflict which will provide further direction for the bullion prices.