New Delhi: Gold investors received a boost on Friday as the price of the precious metal climbed back above the ₹1.5 lakh per 10-gram mark, gaining ₹3,300 for the second straight session. The sharp rally, driven by strong global cues and a weaker US dollar, has strengthened returns for those holding the yellow metal and revived bullish sentiment in the bullion market.
Gold of 99.9 per cent purity climbed ₹3,300, or 2.2 per cent, to ₹1,50,800 per 10 grams (inclusive of all taxes), up from Thursday's closing level of ₹1,47,500 per 10 grams.
Silver also advanced for the fourth consecutive session, rising ₹5,000, or 2.08 per cent, to ₹2,45,000 per kilogram (inclusive of all taxes). The white metal had settled at ₹2,40,000 per kg in the previous session.
"Gold prices extended their gains on Friday, tracking strength in international markets. Prices were driven by a weaker US dollar and diminished prospects for aggressive interest rate hikes," said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Jateen Trivedi, Vice President – Research Analyst (Commodity and Currency) at LKP Securities, said, "The rebound comes after more than a month of sustained selling following the May 13 import duty hike, with improving sentiment supported by a softer US dollar."
He added that the decline in the US dollar index has encouraged fresh buying in bullion, while domestic prices have also benefited from favourable currency movements.
In the international market, spot gold gained USD 57.58, or 1.4 per cent, to USD 4,181.50 per ounce, while spot silver rose 2.44 per cent to USD 62.45 per ounce.
"Spot gold extended gains to edge close to USD 4,200 per ounce on Friday, building on Thursday's rally as the dollar held below the 101 mark," said Kaynat Chainwala, AVP – Commodity Research at Kotak Securities.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said, "Gold prices rose for the third straight day as fears of aggressive interest rate hikes eased following a weaker-than-expected US non-farm payrolls report and Federal Reserve Chair Kevin Warsh's remarks indicating that inflation has been coming down."
US financial markets remained closed on Friday for the country's 250th Independence Day celebrations. Analysts expect trading activity to remain subdued through the weekend.
"Next week brings the first real test of this rally. The minutes of the Federal Open Market Committee (FOMC) meeting, due on July 8, will be closely scrutinised for signs of how divided policymakers are on the interest rate outlook highlighted in June's dot plot," Chainwala said.