Gold prices rise sharply again today, silver rates rebound

New Delhi-India (Dec 21)  Gold prices rose sharply for the second day amid higher global rates and increased demand from local jewellers. Gold rates today jumped Rs 230 to Rs 32,230 per 10 gm at the bullion market, extending their gains after rising by Rs 150 on Thursday. Silver prices rose Rs 250 to close at Rs 38,000 per kg on fresh buying by coin makers and industrial units. In Delhi, prices of gold of 99.9% and 99.5% purities rose Rs 230 each to Rs 32,230 and Rs 32,080 per 10 gm, respectively. Sovereign gold held steady at Rs 25,000 per piece of 8 gram on restricted activity.

Silver ready, too, jumped by Rs 250 to Rs 38,000 per kg, while weekly-based delivery was up by Rs 236 to Rs 37,494 per gm. However, silver coins were unchanged at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

In global markets, gold prices rose today, holding firm near a six-month high struck in the previous session. Spot gold prices rose 0.1% to $1,260.92 per ounce amid safe-haven demand as investors shunned risky assets. Gold prices are up nearly 2% this week. Threats of US government shutdown, worries over global economy and US Federal Reserve’s commitment to retain the core of its plan to tighten monetary policy has battered global stocks this week.

“The US Federal Reserve’s failure to reassure investors that they understand the risks across global markets is seen fuelling appetite for safe-haven gold in the short- to medium-term,” said Lukman Otunuga, a research analyst with FXTM. The analyst expects gold to remain supported if equity markets remain volatile.

The weakness of the US dollar against some global currencies like its Japanese peer also supported gold prices.

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