Gold rebounds Rs 600 to Rs 1,24,700/10g amid firm global cues

New Delhi, Nov 06: Snapping the two-day losing streak, gold prices on Thursday rebounded by Rs 600 to Rs 1,24,700 per 10 grams in the national capital on a fresh wave of buying by traders and firm global cues.

The precious metal of 99.5 per cent purity increased by Rs 600 to Rs 1,24,100 per 10 grams (inclusive of all taxes), according to All India Sarafa Association. The metal had closed at Rs 1,23,500 per 10 grams on Tuesday.

In the local bullion market, gold of 99.9 per cent purity had ended at Rs 1,24,100 per 10 grams in the previous market session.

Silver prices rallied by Rs 1,800 to Rs 1,53,300 per kilogram (inclusive of all taxes) on Thursday. It had settled at Rs 1,51,500 per kg on Tuesday.

Bullion markets were closed on Wednesday on account of the Prakash Gurpurb Sri Guru Nanak Dev holiday.

Globally, spot gold rose USD 28.96, or 0.73 per cent to USD 4,008.19 per ounce while spot silver was trading 1.22 per cent higher at USD 48.60 an ounce.

"Gold advanced on Thursday buoyed by safe haven demand and a modest decline in the US dollar. The ongoing government shutdown has become the longest in US history, with no resolution in sight.

"This prolonged shutdown has created uncertainty in financial markets, which is benefiting safe-haven precious metals," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, retreated by 0.29 per cent to 99.97, after surging to a multi-month high in the previous session, which also acted as a tailwind for precious metals.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, "Optimism around the US-China trade deal could limit further upside in gold prices. Market participants will closely watch the upcoming US Manufacturing and Non-Manufacturing PMI data for cues".