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NEW DELHI — Gold prices jumped by INR 550 to INR 71,600 per 10 grams in the national capital on Tuesday following strong demand from jewellers and firm global trends.
In the previous trade, the precious metal had closed at INR 71,050 per 10 grams.
Silver prices, on the other hand, remained flat at INR 84,500 per kg on Tuesday, according to the All India Sarafa Association.
Meanwhile, gold of 99.5 per cent purity also bounced by INR 550 to INR 71,250 per 10 grams from the previous close of INR 70,700 per 10 grams.
Traders attributed the rise in gold prices to fresh demand from local jewellers and a firm trend in the international markets.
Globally, Comex gold is trading higher at USD 2,432.90 per ounce, up by USD 7.40 per ounce from the previous close.
Market experts said gold prices are stuck in a range ahead of policy meeting outcomes by the Bank of Japan and the US central bank.
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"Gold/commodities broadly are stuck in a range so far in the session, amid caution ahead of the key event i.e. the policy meeting outcome from Bank of Japan and the U.S. Federal Reserve tomorrow, and the U.S. employment data later in the week," Pranav Mer, VP - Research (Commodity & Currency) BlinkX and JM Financial, said.
In the international markets, Comex silver rose 0.27 per cent to USD 27.94 per ounce.
"The Federal Reserve is expected to leave interest rates steady on Wednesday, but all eyes will be on any signals of a rate cut in September," Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities, said.
In a report on Tuesday, the World Gold Council (WGC) said India's gold demand declined 5 per cent to 149.7 tonnes during the June 2024 quarter, due to record-high prices.
"...This can be attributed to record-high gold prices impacting affordability and causing a slowdown in consumer purchases. However, the overall value of demand remained strong, increasing by 14 per cent, highlighting gold's enduring value for Indian consumers," said Sachin Jain, WGC Regional CEO, India.