Gold rises Rs 200 to Rs 98,650/10g; silver rallies Rs 2,040 per kg
New Delhi, May 22: Gold prices rose Rs 200 to Rs 98,650 per 10 grams in the national capital on Thursday due to a pick-up in local demand by jewellers and stockists, according to the All India Sarafa Association.
Gold of 99.5 per cent purity increased by Rs 200 to Rs 98,200 per 10 grams (inclusive of all taxes) on Thursday.
In contrast, silver prices in the local markets breached the crucial Rs 1 lakh per kg level by rallying Rs 2,040 to Rs 1,01,200 per kg (inclusive of all taxes) on Thursday.
Firm global trends and escalating tensions in the Middle East also supported the local prices, the association.
"Gold prices extended their rally as the US dollar remained under pressure, following renewed concerns over economic stability," Abans Financial Services Chief Executive Officer Chintan Mehta said.
US President Donald Trump's proposed budget, which includes significant tax reductions, is projected to add over USD 3 trillion to the national debt.
This has heightened fears of financial instability and weakened confidence in US government bonds, Mehta said.
Meanwhile, spot gold slipped 0.50 per cent to USD 3,298.69 per ounce in the international markets.
"Gold prices traded positive supported by a sharp decline in the US Dollar Index and renewed concerns over US debt sustainability.
"The weaker dollar and ongoing global geopolitical uncertainties have sustained investor interest in gold as a safe-haven asset," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
HDFC Securities' Senior Analyst of Commodities Saumil Gandhi said gold extended gains on Thursday, driven by safe-haven demand amid renewed tensions between the US and China, which dampened investors' appetite for riskier assets, leading to increased demand for the safe haven.
According to Kaynat Chainwala, AVP – Commodity Research, Kotak Securities, market participants will be awaiting the release of key flash PMI data from major global economies, including the US and UK and US jobless claims, later in the day.
