New Delhi: Gold prices rallied for the second straight session to hit a one-month high of ₹1.5 lakh per 10 grams in the national capital on Wednesday, tracking a sharp rise in global precious metal rates.
The yellow metal of 99.9 per cent purity appreciated by ₹2,500, or 1.7 per cent, to ₹1,50,000 per 10 grams (inclusive of all taxes) from Tuesday's closing level of ₹1,47,500 per 10 grams, according to the All India Sarafa Association.
The precious metal had last traded around these levels on July 6, when it settled at ₹1,50,650 per 10 grams.
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Silver also resumed its upward march after remaining flat in the previous session, surging by ₹6,200 to almost a one-month high of ₹2,32,700 per kilogram (inclusive of all taxes). It had settled at ₹2,26,500 per kg in the preceding session.
The white metal had last traded near these levels on July 9, when it had finished at ₹2,32,000 per kg.
"Gold prices climbed to a one-month high as growing optimism over a potential US-Iran agreement to reopen the Strait of Hormuz eased concerns over energy-driven inflation and reduced expectations of further monetary tightening by the Federal Reserve," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.
In global markets, spot gold gained $85.28, or 2.09 per cent, to $4,162.76 per ounce, while silver rose a little over 3 per cent to $61.35 per ounce.
"Spot gold is globally trading with a steep gain of 2 per cent at $4,160 per ounce as a pullback in crude oil prices has alleviated interest rate hike concerns by the Federal Reserve," said Praveen Singh, Head of Commodities at Mirae Asset ShareKhan.
However, Singh noted that crude oil prices pared their losses and turned higher after Yemen's Houthis threatened attacks on Saudi tankers in the northern Red Sea despite hopes of progress in US-Iran talks.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said market participants are awaiting the US ADP employment data, followed by the nonfarm payrolls report and the unemployment rate later this week, for fresh cues on the Fed's interest rate trajectory.
"These releases are expected to drive the next major move in gold," Trivedi added.
