Gold snaps 7-day losing streak; rallies Rs 1,200 to Rs 98,670 per 10 g

New Delhi, July 01: Cutting short the seven-day losing streak, gold prices rebounded by Rs 1,200 to Rs 98,670 per 10 grams in the national capital on Tuesday due to fresh buying by stockists in line with strong global trends, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity had settled at Rs 97,470 per 10 grams on Monday.

Gold of 99.5 per cent purity climbed by Rs 1,100 to Rs 98,150 per 10 grams (inclusive of all taxes) on Tuesday. It had closed at Rs 97,050 per 10 grams in the previous market close.

"A retreat in the US dollar, driven by concerns over the ballooning US fiscal deficit and the market's focus on President Donald Trump's proposed tax-cutting and spending bill, has made gold more attractive," Abans Financial Services' Chief Executive Officer Chintan Mehta said.

President Donald Trump has also threatened new tariffs on Japan ahead of the July 9 deadline for the implementation of reciprocal tariff. These shifts are helping non-yielding assets like gold hold up, especially with inflation expectations still running high, Mehta added.

In addition, silver prices rallied by Rs 2,000 to Rs 1,04,800 per kilograms (inclusive of all taxes) on Tuesday. The white metal had finished at Rs 1,02,800 per kg on Monday.

On the global front, spot gold rose by USD 44.01 or 1.33 per cent to USD 3,346.92 per ounce.

"With participants increasingly pricing in sustained dollar weakness, gold continues to attract safe-haven buying.

"The sentiment remains buoyant this week, driven by expectations around key US economic data, particularly the non-farm payrolls, unemployment figures, and ADP non-farm employment change," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

Experts also said that Federal Reserve Chair Jerome Powell's commentary will also provide further cues on the interest rate path, influencing further movement in the precious metal prices.