Gold rises Rs 500; silver jumps Rs 800 amid wedding festivities

New Delhi, Nov 8: Gold prices rose Rs 500 to reclaim the Rs 80,000 mark in the national capital on Friday amid fresh buying by local jewellers and retailers for the wedding festivities, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity had settled lower at Rs 79,500 per 10 grams on Thursday.

Silver also jumped Rs 800 to Rs 94,600 per kg against the previous close of Rs 93,800 per kg.

The price of gold of 99.5 per cent purity climbed Rs 500 to Rs 79,600 per 10 grams. It had closed at Rs 79,100 per 10 grams on Thursday.

Traders said demand from local jeweller businesses has picked up for the wedding season. Besides, gold prices witnessed an uptick as investors bet on this asset class as a safe haven, owing to depreciation in the rupee against the US dollar (USD).

In future trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery slipped Rs 198 or 0.26 per cent to trade at Rs 77,213 per 10 grams.

"Gold traded weak amid strength in the dollar index and the Federal Reserve's (Fed) policy announcement that aligned with expectations of a 0.25 per cent rate cut," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.

The Fed's outlook, coupled with inflation trending toward the targeted 2 per cent, offered no new surprises to support gold prices. Profit-booking continued after Donald Trump's election victory, Trivedi added.

Silver contracts for December delivery decreased Rs 630 or 0.68 per cent to Rs 91,683 per kg on the bourse.

In the Asian market hours, Comex gold futures depreciated by USD 10 per ounce or 0.37 per cent to USD 2,695.70 per ounce.

According to commodities experts, gold price dropped below the USD 2,700 level on Friday due to a strengthening in the US dollar, buoyed by investor expectations that economic policies under President-elect Donald Trump may spur growth and inflation.

On Thursday, the US Fed announced interest rate cuts, with an anticipated 25-basis points reduction, which have boosted gold's appeal, as a lower interest rate environment typically supports the metal.

Additionally, Fed Chair Jerome Powell during the Federal Open Market Committee (FOMC) meeting suggested that the election outcome, despite policies like higher tariffs, tax cuts, and immigration changes, is unlikely to impact its near-term policy direction.

Silver also traded 0.80 per cent lower at USD 31.60 per ounce in the global markets.

On the market outlook for gold, Abans Holdings Chief Executive Officer (CEO) Chintan Mehta said traders believe that gold prices will rise from their current levels.

However, the possibility of a delay in additional interest rate cuts may push prices down in the near term, though such dips could present an opportunity to accumulate gold, Mehta added.