Gold Rebounds 1,200 Rupees as Buyers Return to Market
Gold prices reversed a three-day losing streak, gaining 1,200 rupees per 10 grams as bargain hunting and falling oil costs boosted investor confidence.
Gold prices in New Delhi rose by 1,200 rupees on Wednesday. The metal reached 155,600 rupees per 10 grams. This marked a reversal of a three-session losing streak. Traders engaged in bargain buying during the session. Falling crude oil prices also contributed to the upward move.
Silver prices surged by 7,400 rupees per kilogram. The precious metal closed at 242,000 rupees per kilogram. This followed two sessions of flat trading. Global spot gold climbed 53.96 US dollars to 4,348.10 per ounce. Spot silver increased by 1.5 percent to 64.61 US dollars per ounce.
Crude oil decline supports bullion demand
A pullback in crude oil prices improved market sentiment for precious metals. Saumil Gandhi, Senior Analyst at HDFC Securities, noted this shift. Traders took advantage of lower prices after recent losses. The combination of buying interest and lower energy costs drove the rally. This dynamic helped stabilize the bullion market in the capital.
Investors await Federal Reserve policy decision
US Treasury yields softened ahead of the Federal Reserve meeting. This provided additional support to gold prices. Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, highlighted this factor. Spot gold traded near 4,350 US dollars per ounce. The price remained confined around the 4,300 US dollar level. Investors waited for the Federal Open Market Committee decision.
Markets expect a 25 basis point rate hike from the Fed. Singh noted that gold remained resilient despite earlier oil price spikes. This resilience reflects uncertainty over the Fed's future stance. Investors seek clarity on whether this will be a one-off hike. The market is assessing the potential for a series of rate increases.
Local data confirms price recovery
GN auto markets/commodities: gold prices reported the specific local figures. Gold of 99.9 percent purity appreciated from 154,400 rupees. The new close was 155,600 rupees per 10 grams. These figures include all applicable taxes. Silver moved from a previous close of 234,600 rupees. The final price stood at 242,000 rupees per kilogram.
