Gold prices rebounded by ₹2,440 to ₹1.49 lakh per 10 grams while silver prices climbed ₹5,300 to ₹2.3 lakh per kg in the national capital on Monday following strong trends in global markets.
Gold of 99.9 per cent purity jumped ₹2,440 to ₹1,49,640 per 10 grams (inclusive of all taxes), according to the All India Sarafa Association. The metal traded at ₹1,47,200 per 10 grams in the previous session.
Silver prices also rebounded by ₹5,300 to ₹2,30,000 per kg (inclusive of all taxes) from Friday's closing level of ₹2,24,700 per kg.
Traders said both precious metals rebounded after two consecutive sessions of losses amid easing inflation concerns as crude oil prices retreated, boosting investor sentiment.
"Gold gained on Monday as easing tensions in West Asia triggered a sharp decline in crude oil prices, easing inflation concerns, while a weak US dollar and lower Treasury bond yields provided further support for bullion," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.
He, however, added that gains in the domestic market remained limited as the Indian rupee strengthened against the US dollar.
In the global markets, spot gold gained $42.13, or 1.04 per cent, to $4,095.30 per ounce, while silver rose 1.47 per cent to $59.04 per ounce.
"Spot gold hovered near $4,100 per ounce on Monday, while silver extended gains to $59 per ounce in the international markets," Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
She said the retreat in crude oil prices after a temporary pause in US-Iran strikes eased inflation concerns that had been fuelling expectations of a tight monetary policy, providing relief to bullion.
Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd, said investors will track developments in West Asia, inflation data from the Eurozone, Japan and the United States.
Besides, GDP number releases, US Consumer Confidence, weekly jobless claims, and monetary policy decisions by the Federal Reserve, the Bank of England, and the Bank of Japan for further direction on bullion prices, he added.
