Gold prices rise again today, silver rates surge
New Delhi-India (Dec 11) Higher demand from domestic jewellers and weakness in rupee lifted gold prices today. Gold prices today rose by Rs 155 to Rs 32,650 per 10 grams at the bullion market while silver prices surged by Rs 425 to Rs 38,575 per kg on strong demand from industrial units and coin makers. Gold prices had jumped Rs 145 on Monday. In Delhi, prices of gold of 99.9% and 99.5% purities surged Rs 155 each to close at Rs 32,650 and Rs 32,500 per 10 gram, respectively, Press Trust of India reported. Sovereign gold however held steady at Rs 25,000 per piece of 8 gram.
On the other hand, silver ready rates today rose by Rs 425 to Rs 38,575 per kg, while weekly-based delivery gained Rs 269 to Rs 38,159 per kg. Silver coins however held steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.
The rupee today weakened close to 72.50 against the US dollar, before pulling back. A depreciation of the rupee against the US dollar increases the imported price of gold.
In global markets, gold prices edged higher today on expectations that US Federal Reserve could pause its rate hike cycle sooner than expected. Spot gold was up 0.3% at $1,247.92 per ounce, after touching a five-month high of $1,250.55 on Monday. Traders will now focus on the US Federal Reserve’s December 18-19 policy meeting for clues on future rate hikes. Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.
Some analysts are bullish on gold for 2019, given weakening US dollar outlook and expectations of slower pace of rate hikes from Fed. “Weakening US dollar outlook and very dovish pivots from the Fed, a lot of uncertainty boxed around equity markets... It can still turn quite negative, so this is why gold remains a good hedge against a lot of market risks,” said Stephen Innes, APAC trading head at OANDA in Singapore. “I am very bullish on gold in this setup into 2019.”
The dollar index, a measure of the greenback’s strength versus a group of six major peers, edged lower after rallying in the previous session as a vote on Brexit deal was postponed.
On the higher side, if gold prices break above $1,250, the rally could extend further, said Stephen Innes of OANDA. On the downside, it has support at $1,240, he added.
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