Gold up by Rs 360 on jewellers’ buying

Gold prices on Thursday rose Rs 360 to Rs 34,830 per 10 gram at the bullion market here on increased buying from local jewellers, according to the All India Sarafa Association. Silver, however, fell by Rs 140 to Rs 41,660 per kg on decreased offtake by industrial units.

Bullion traders said sentiment in the domestic market turned upbeat on the back of increased buying by jewellers and retailers, leading to a rise in the prices of the yellow metal. They, however, added that the further gains were capped by weak global market.

Globally, gold was trading lower at USD 1,338.31 an ounce and silver moved marginally down to 15.98 an ounce in New York. Meanwhile, Tapan Patel, senior research analyst (commodities), HDFC Securities, said going forward, global gold prices may see some correction as “negative divergence on daily charts” is signalling.

He added that the global prices of the yellow metal came under pressure on stronger dollar following the minutes of the US Federal Open Market Committee (FOMC)meeting where the US central bank signalled less dovish stance, keeping the doors open for future rate hikes in 2019.

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“The dollar index traded near 96.50, recovering 40 bps (basis points) against the six major currencies after FOMC minutes. The progressive trade talks between the US and China has reinstated the investment confidence in world equity markets which is the additional factor for the decline in gold prices,” Patel added.

In the national capital, gold of 99.9 per cent and 99.5 per cent purities advanced by Rs 360 each to Rs 34,830 and Rs 34,680 per 10 gram, respectively. The gold prices Wednesday had dropped Rs 210. Sovereign gold also rose by Rs 200 to Rs 26,600 per piece of 8 gram.

On the other hand, silver ready declined by Rs 140 to Rs 41,660 per kg, while weekly-based delivery decreased by Rs 51 to Rs 40,501 per kg. However, silver coins were in good demand and traded higher by Rs 1,000 at Rs 83,000 for buying and Rs 84,000 for selling of 100 pieces.