Gold rallies Rs 580; Silver climbs Rs 500

New Delhi: Gold prices rallied Rs 580 to Rs 97,030 per 10 grams in the national capital on Monday amid strong trends in the international markets, according to the All India Sarafa Association. On Friday, the precious metal of 99.9 per cent purity had closed at Rs 96,450 per 10 grams. Gold of 99.5 per cent purity climbed Rs 580 to Rs 96,580 per 10 grams (inclusive of all taxes) on Monday. It had settled at Rs 96,000 per 10 grams in the previous market session. “Gold prices edge higher, but remain under pressure, as softer US PPI and CPI data for April indicate disinflation. “At the same time, the US Treasury yield is approaching 4.5 per cent, extending Friday’s rebound after rating agency Moody’s downgraded the US credit rating from Aaa to Aa1,” Abans Financial Services Chief Executive Officer Chintan Mehta said. This move has reignited interest in gold, as investors reduce exposure to US Treasury bills and seek a safe haven asset, Mehta added. Additionally, silver appreciated by Rs 500 to Rs 98,500 per kg (inclusive of all taxes). The white metal had ended at Rs 98,000 per kg on Friday. On the global front, spot gold went up by $39.05 or 1.22 per cent to $3,241.82 per ounce.