Gold prices recovered to the Rs 80,000 mark in the national capital on Wednesday due to heavy buying from jewelers and stockists, according to the All India Sarafa Assocation.
The 99.9 percent pure precious metal rose by Rs 300 to touch a one-month high of Rs 80,000 per 10 grams. It settled at Rs 79,700 per 10 grams in the previous session on Tuesday.
The price of gold of 99.5 percent purity rose by Rs 300 to Rs 79,600 per 10 grams on Wednesday. The yellow metal ended at Rs 79,300 per 10 grams on Tuesday.
Extending its winning run for a third day, silver prices again jumped over Rs 500 to touch a near one-month high of Rs 92,500 per kg. The white metal had closed at Rs 92,000 per kg in the previous market session.
Traders pointed to increased demand from jewelers and dealers in local markets.
On MCX, gold contracts for February delivery were valued at Rs 43 to Rs 77,574 per 10 grams.
Silver contracts for delivery in March rose by Rs 224, or 0.25 percent, to Rs 91,097 per kg in futures trading on the Multi Commodity Exchange (MCX) on Wednesday.
Meanwhile, Comex gold futures fell 0.09 percent to USD 2,663.10 per ounce on international markets.
“Gold rose on Wednesday as sentiment was boosted by strong Chinese demand. China, the world’s top gold buyer, increased its holdings in December for the second consecutive month based on official figures published on Tuesday,” Saumil Gandhi, Chief Commodity Analyst. at HDFC Securities, said.
The major banks around the world together, in November 2024, added 53 tons of gold to their reserves, with the Reserve Bank of India adding eight tons, the World Gold Council (WGC) said in a report on Monday.
China’s purchase of gold for the second straight month is considered bullish for the precious metal (despite high prices). Traders believe China will continue to add gold to diversify its reserves after Trump returns to the White House, Gandhi said.
Comex silver futures were quoted higher in Asian trading hours at USD 30.71 per ounce.
“The US non-farm payrolls report will be released on Friday. The softening of the US figures this week could open the door to gains if investors become enthusiastic about the Federal Reserve’s delivery of interest rate cuts in 2025,” Renisha Chainani, Head of the Department. Research in Augmont, said.
Meanwhile, the commerce minister revised down the gold import numbers by USD 5 billion to USD 9.84 billion in November, according to the Directorate General of Commercial Intelligence and Statistics (DGCIS).
DGCIS is an arm of the Department of Commerce.
According to the ministry’s data released last month, the country’s gold sales in November reached a record high of USD 14.86 billion, registering a four-fold increase.
