New Delhi: Silver prices climbed Rs 4,000 to Rs 2.68 lakh per kilogram in the national capital on Wednesday, while gold edged up to Rs 1.61 lakh per 10 grams tracking strong global trends.
According to the All India Sarafa Association, the white metal jumped by Rs 4,000, or 1.5 per cent, to Rs 2,68,500 per kilogram (inclusive of all taxes) from Tuesday’s closing level of Rs 2,64,500 per kg.
Gold of 99.9 per cent purity also witnessed buying by traders, with prices rising Rs 600, or 0.4 per cent, to Rs 1,61,300 per 10 grams (inclusive of all taxes). It had settled at Rs 1,60,700 per 10 grams in the previous session.
“Gold and silver advanced on Wednesday supported by growing expectations of a more aggressive rate cut by the Federal Reserve,” Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.
He added that the move followed softer US economic data, as December retail sales fell short of forecasts, signalling a slowdown in consumer spending and reinforcing concerns about moderating growth.
“Post-data markets have now raised the probability of three Fed rate cuts this year, up from two just a week ago, a lower interest rate scenario favours non-yielding metals like gold,” Gandhi said.
In the global markets, spot silver gained USD 4.71, or nearly 6 per cent, to USD 85.51 per ounce, while gold was trading 1.06 per cent higher at USD 5,078.72 per ounce.
Spot gold was trading higher on a weaker US dollar on Wednesday as investors await the crucial US nonfarm payroll data (January) due to release later in the day, Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, said.
The outcome of data numbers is likely to trigger heightened volatility in precious metals in the overseas market.
On the geopolitical front, Gandhi said renewed tensions also underpinned safe-haven demand for precious metals.
In the latest developments, Washington is reportedly considering intercepting tankers carrying Iranian crude and may deploy additional naval assets if negotiations over Iran’s nuclear programme break down.–(PTI)
