Gold climbs Rs 500; silver jumps Rs 400

New Delhi, May 2

Gold prices climbed Rs 500 to Rs 72,350 per 10 grams in the national capital on Thursday amid a rally in precious metal rates in the global market, according to HDFC Securities.

In the previous session, it had closed at Rs 71,850 per 10 grams.

Silver prices also jumped Rs 400 to Rs 83,500 per kg. It had ended at Rs 83,100 per kg in the previous trade.

The commodity markets were partially closed on May 1 on the occasion of Maharashtra Day/Labour Day.

“Spot gold prices (24 carats) in the Delhi markets are trading at Rs 72,350 per 10 grams, up by Rs 500, taking bullish cues from overseas markets,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In the global markets, spot gold at Comex was trading at USD 2,304 per ounce, up by USD 16 from the previous close.

“Gold prices surged on Thursday after the US Federal Reserve kept interest rates unchanged and stated that it would slow the pace of balance sheet reduction.

“In addition, Fed Chair Jerome Powell failed to provide a path for future reduction of interest rates, suggesting that the easing bias remains in place this year, which boosted traders’ sentiment towards gold. Following, the two-day Federal Open Market Committee (FOMC) policy meeting, US Treasury yields and the US dollar declined, which also lent support to the precious metal,” Gandhi said.

Silver was also trading higher at USD 26.45 per ounce. In the previous close, it had settled at USD 26.39 per ounce.

“Investors are now awaiting the Nonfarm Payrolls and unemployment data, which are expected to provide further insights into the direction of bullion prices,” Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.