New Delhi | Gold prices jumped by Rs 800 to Rs 98,820 per 10 grams in the national capital on Tuesday due to heavy buying by stockists, according to the All India Sarafa Association.
The yellow metal of 99.9 per cent purity had settled at Rs 98,020 per 10 grams in the previous market close.
Gold of 99.5 per cent purity in the national capital appreciated by Rs 700 to Rs 98,500 per 10 grams (inclusive of all taxes) on Tuesday. The precious metal had closed at Rs 97,800 per 10 grams on Monday.
"Gold prices rose on Tuesday, supported by demand for safe haven and an increasing consensus that the US Federal Reserve will restart its interest rate-cutting cycle in the upcoming meeting next month.
"Dovish remarks from Federal Reserve officials, along with last week's disappointing job market report, led traders to become more optimistic about potential rate cuts at the Fed's upcoming meeting in September, boosting gold traders sentiment," Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.
As per the Sarafa Association, silver prices rallied Rs 2,000 to Rs 1,12,000 per kilogram (inclusive of all taxes) on Tuesday. The white metal had finished at Rs 1,10,000 per kg in the previous market session.
"Spot gold extended its rally to close nearly 0.30 per cent higher on Monday at USD 3,375 per ounce as US factory orders fell in June.
"The US President Donald Trump threatening India with significantly steep tariffs over Russian oil purchases also boosted the metal as the Indian rupee fell to Rs 88/dollar in the NDF market," Praveen Singh, Associate Vice-President, Fundamental currencies and commodities at Mirae Asset Share Khan, said.
Meanwhile, spot gold fell by USD 20.95 or 0.62 per cent to USD 3,352.61 per ounce in New York.
"Gold is holding steady near USD 3,430 per ounce as markets await the release of the ISM Services PMI and the latest US trade balance data," Kaynat Chainwala, AVP Commodity Research at Kotak Securities, said.
On the international front, spot silver was trading flat at USD 37.39 per ounce.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "The primary focus remains on trade tariff developments, with the US looking to recalibrate tariffs in its favour." Despite the short-term dip, gold continues to price in the broader impact of trade tariff uncertainty and dollar weakness, keeping the overall trend supported," he added.