If you were planning to make most of the falling gold prices and indulge in some retail therapy, you've unfortunately missed your window of opportunity. Gold prices surged by Rs 210 to Rs 31,570 per 10 grams at the bullion market on Wednesday. According to traders, sentiment bolstered at home after gold prices rose to a one-week high in global markets, rebounding from a seven-month low touched in the previous session. Globally, gold is currently up 0.45 per cent at 1,257.31 an ounce, after reportedly touching a one-week high of $1,261.10 earlier in the day.
The price rally was largely driven by a firm trend overseas, but increased buying by local jewellers to meet retailers demand at domestic spot market supported the uptrend. In the national capital, gold of 99.9 per cent and 99.5 per cent purity rebounded by Rs 210 each to Rs 31,570 and Rs 31,420 per 10 grams, respectively. It had lost Rs 290 in the previous four days. Sovereign, however, remained flat at Rs 24,800 per piece of eight grams.
According to Reuters, a softer US dollar also stoked demand for the yellow metal. The greenback was down 0.2 per cent against the yen at 110.3 on Wednesday. The looming end-of-week deadline for the implementation of the US tariffs on Chinese imports and the much-awaited US jobs data for June, also expected on Friday, have reportedly muted dollar buying.
Citing European officials, the agency added that China is putting pressure on the European Union to issue a strong joint statement against US President Donald Trump's trade policies at a summit later this month but is facing resistance. On Tuesday, the Chinese yuan dropped through the psychologically significant 6.7 mark against the dollar. This is the lowest it has dived in 11 months - courtesy growing anxieties over the US-China trade skirmishes - and China's central bank is believed to have intervened to support it. This trade friction is playing a role in driving up gold prices.
However, silver remained under selling pressure and slipped below the Rs 40,000-mark. Silver ready dropped by Rs 390 to Rs 39,910 per kg on Tuesday, while weekly-based delivery recovered by Rs 315 to Rs 39,260 per kg on speculative buying. Silver coins maintained a steady trend at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.
With agency inputs