Strong global cues, weak Greenback strengthening precious metals

Gold resumed trading on a positive note, supported by ongoing safe-haven demand and weaker US macroeconomic data that heightened expectations for a rate cut by the Federal Reserve in next month’s meeting, said Saumil Gandhi, sr analyst (commodities) at HDFC Securities

Gold prices rallied by Rs 1,300 to Rs 1,25,900 per 10 grams in the national capital on Monday amid strong global cues and a weak dollar, according to the All India Sarafa Association.

The precious metal of 99.5 per cent purity climbed by Rs1,300 to Rs1,25,300 per 10 grams (inclusive of all taxes) against Rs1,24,000 per 10 grams on Friday.

In the local bullion market, gold of 99.9 per cent purity had settled at Rs1,24,600 per 10 grams in the previous market session.

“Gold resumed trading on a positive note, supported by ongoing safe-haven demand and weaker US macroeconomic data that heightened expectations for a rate cut by the Federal Reserve in next month’s meeting,” Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said. He noted that a softer dollar has provided further support for bullion. In addition, silver prices bounced by Rs 2,460 to Rs 1,55,760 per kilogram (inclusive of all taxes) on Monday. The white metal had finished at Rs 1,53,300 per kg on Friday, as per the association. On the global front, spot gold increased by $83.12, or 2.08 per cent, to $4,082.84 per ounce while spot silver was trading 3.30 per cent higher at $49.93 per ounce.

“Gold gained as a weak dollar cues and positive sentiment following the reopening of the US government lifted prices. The focus now shifts to key inflation data, including Consumer Price Index (CPI) and Core CPI in the US, and CPI & WPI inflation data in India, which will guide short-term market direction,” Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.