Gold Prices Rise by Rs 350 Amid Strong Domestic Demand and Global Trends

New Delhi, 01 Aug: Gold prices rose Rs 350 to Rs 71,950 per 10 grams in the national capital on Wednesday, taking cues from domestic demand and global trends.In the previous session, the precious metal had closed at Rs 71,600 per 10 grams.Silver prices jumped Rs 1,100 to Rs 85,600 per kilogram on Wednesday. It had closed at Rs 84,500 per kg in the previous trade, according to the All India Sarafa Association.Meanwhile, gold of 99.5 per cent purity also increased by Rs 350 to Rs 71,600 per 10 grams from the previous close of Rs 71,250 per 10 grams.The commodity market experts suggested that the gold demand in the Indian markets remains high, driven by the recent import duty cuts and the upcoming festive season.“Participation in gold has been on an increasing trend. The prices of the yellow metal may further firm up correction as some participation continues to increase. We believe that prices of gold will increase from its current prices,” Chintan Mehta, CEO of Abans Holdings, said.Globally, Comex gold is trading higher at USD 2,465.50 per ounce, up by USD 13.60 per ounce from the previous close.“Comex gold extended gains following a 1 per cent gain yesterday, holding well above USD 2,400 per ounce buoyed primarily by safe-haven buying in response to the recent airstrike in Beirut by Israel,” Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.Additionally, softer US Treasury yields and a weaker dollar ahead of the Federal Reserve’s policy decision have supported the yellow metal, Chainwala added.In the international markets, Comex silver climbed 0.58 per cent to USD 28.69 per ounce.The bullion remained supported by a hike in key interest rates by the Bank of Japan to curb the yen’s slide against the US dollar, and rising hopes of rate cuts by the US Fed in September, according to market experts.“In major cues to watch would be the US Fed’s policy meeting outcome later in the day and the US employment data on Friday,” Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, said.“The Fed is expected to keep its benchmark rate in the range of 5.25 per cent to 5.5 per cent, but markets are keenly awaiting the FOMC statement, as policymakers are likely to set the stage for a rate cut in September,” Chainwala of Kotak Securities said.