Gold prices rose by Rs 80 to Rs 38,789 per 10 gram in the national capital on Tuesday as stronger rupee limited the gains, according to HDFC Securities. On Monday, gold had closed at Rs 38,709 per 10 gram.
“Spot gold for 24 Karat in Delhi was trading up by Rs 80, limiting the upside on stronger rupee and weak domestic demand. The spot rupee was trading 7 paise stronger against the dollar during the day,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
In early trade, the Indian rupee appreciated by 8 paise to 71.58 against the US dollar. Silver prices also gained Rs 101 to Rs 45,826 per kg from Rs 45,725 per kg in the previous trade.
In the international market, gold was ruling higher at USD 1,463 per ounce, while silver was trading with gains at USD 16.91 per ounce. “Gold prices traded firm on Tuesday with international spot gold prices rallying above USD 1,463 an ounce with fall in US manufacturing PMI and mounting worries over the US-China trade deal,” Patel added.
Motilal Oswal Financial Services Ltd VP (Commodities Research) Navneet Damani said, “Gold prices showed some signs of recovery after US President targeted Brazil and Argentina as he announced to impose tariffs on steel and aluminium imports from both the countries.” The sudden move to slap tariffs stoked fresh concerns around global trade and hit risk appetite, he said.
“US factory activity contracted for a fourth straight month in November as new orders slumped to lowest level since 2012, while construction spending fell in October, giving additional support to precious metals,” he added.