Gold prices rise by Rs 10 to Rs 75,120, silver rises by Rs 100 to Rs 92,600 | commodities

In Mumbai, the price of ten grams of 22 carat gold is at par with Kolkata and Hyderabad at Rs 68,860.

In Delhi, Bengaluru and Chennai, the price of ten grams of 22 carat gold was Rs 69,010, Rs 68,860 and Rs 68,860 respectively.

The the price of a kilogram of silver in Delhi is in line with the silver price in Kolkata and Mumbai at 92,600.

The price of one kilogram of silver in Chennai was Rs 97,600.

American gold rose above the $2,600 level for the first time on Friday, extending a rally fueled by bets on further US interest rate cuts and rising tensions in the Middle East.

Spot gold was up 1.3 percent at $2,620.63 an ounce by 1:43 p.m. ET (1743 GMT), while U.S. gold futures settled 1.2 percent higher, up to $2,646.20.

Bullion’s latest rally got a boost after the Federal Reserve kicked off an aggressive easing cycle on Wednesday with a half-percentage-point cut, adding to the call for non-interest-bearing gold.

Prices of the safe-haven asset rose 27% in 2024, their biggest annual gain since 2010, as investors also sought to hedge uncertainties caused by protracted conflicts in the Middle East and elsewhere.

The record rally could be set for a correction, analysts said.

Some analysts, however, said that gold could see more increases.

“Geopolitical risks such as ongoing conflicts in Gaza, Ukraine and elsewhere will ensure safe haven demand for gold is supported,” Forex.com analyst Fawad Razaqzada said in a note.

The continued weakness of the dollar, which makes gold cheaper for holders of other currencies, provided additional tailwinds, analysts said.

Elsewhere, spot silver gained 1.2% to $31.16. Platinum was down 1.1% at $978.50 and palladium was down 0.5% at $1,074.84.

(with contributions from Reuters)

First publication: September 21, 2024 | 8:09 AM IST