Gold prices rise in India amid domestic demand
In New Delhi, gold prices rose by Rs 50 to Rs 75,150 per 10 grams on Monday, driven by fresh buying from jewellers. The All India Sarafa Association reported that the yellow metal closed at Rs 75,100 per 10 grams on Saturday. The increase in gold prices was primarily due to higher domestic demand, although a weak trend in global markets limited the gains.
Silver prices see a slump
On the other hand, silver prices slumped by Rs 500 to Rs 94,000 per kg, down from Rs 94,500 per kg in the previous session. Globally, spot gold was trading at USD 2,407.92 per ounce, registering a decrease of USD 3.51 per ounce. Analysts noted that gold prices experienced volatility but managed to remain above USD 2,400, following the release of US Consumer Price Index data last week.
Insights from market analysts
According to Manav Modi, Senior Analyst of Commodity Research at Motilal Oswal Financial Services Ltd, updates regarding the US Presidential election and geopolitical tensions could potentially increase market volatility. Additionally, traders will be paying attention to US Federal Reserve Chair Jerome Powell’s speech on Monday. Despite the current negative trend in gold and other commodities, Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services, believes that the downside in bullion is limited and anticipates a pickup in safe-haven demand in the upcoming sessions.
Upcoming data points and market outlook
Market participants are also keeping an eye on important data releases such as US Retail Sales, Industrial production, and housing numbers this week. These data points could provide insights into the overall economic health and the Federal Reserve’s interest rate path going forward. Despite the current uncertainties in the market, analysts remain cautiously optimistic about the future outlook for gold and silver prices.
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