Gold Rebounds ₹1,400 To ₹1.47 Lakh Per 10 Grams

Gold prices rebounded by ₹1,400 to ₹1,46,900 per 10 grams in the national capital on Monday, driven by firm global trends. The yellow metal's price increase came after a sharp sell-off last week, with traders citing value buying as the reason for the rebound.

The All India Sarafa Association reported that gold of 99.9 per cent purity climbed ₹1,400 from Friday's closing level of ₹1,45,500 per 10 grams. However, silver prices continued to decline, falling by ₹1,000 to ₹2,21,500 per kilogram. This marks the sixth consecutive session of losses for silver, with the metal declining by ₹15,500, or 6.5 per cent, since July 10.

According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, gold edged higher on Monday due to positive cues from international markets. A subdued movement in the US dollar also improved the appeal of the precious metal for overseas buyers. In the international markets, spot gold rose marginally to trade around USD 4,020 per ounce, and silver gained nearly 2 per cent to USD 56.88 per ounce.

The ongoing tensions between the US and Iran have been a key factor in the movement of gold and silver prices. Mediation efforts between the two countries continued despite fresh American military strikes on Tehran. Kaynat Chainwala, AVP, Commodity Research, Kotak Securities, noted that crude oil remained the market's biggest swing factor, with Brent crude briefly climbing above USD 91 a barrel and West Texas Intermediate topping USD 85.

The price of oil retreated after Iran acknowledged diplomatic exchanges through mediators aimed at easing tensions. Chainwala said that with both chokepoints still live but a mediation channel now open, Brent could retest USD 90 on renewed escalation, though confirmed progress on talks could quickly unwind the current risk premium.

Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said that gold is likely to remain range-bound in the near term, with geopolitical headlines driving short-term moves. Although expectations of further monetary policy tightening by the Fed continue to limit sustained upside in precious metals, the ongoing tensions in West Asia and the surge in oil prices could cloud the bullion outlook.

The movement of gold and silver prices is closely watched by investors, as it can have a significant impact on the market. The current volatility in the market is expected to continue, with investors keeping a close eye on geopolitical developments and their impact on the prices of precious metals.

In conclusion, the rebound in gold prices and the decline in silver prices reflect the ongoing volatility in the market. The movement of gold and silver prices is driven by a range of factors, including geopolitical tensions, the movement of the US dollar, and the price of oil. As the situation continues to evolve, investors will be closely watching the prices of precious metals, looking for opportunities to buy or sell.

The prices of gold and silver are also influenced by the actions of central banks, particularly the Federal Reserve. The expectation of further monetary policy tightening by the Fed has limited the upside in precious metals, as higher interest rates can reduce the appeal of gold and silver as investment options.

Overall, the movement of gold and silver prices is complex and influenced by a range of factors. As the market continues to evolve, investors will need to stay informed about the latest developments and their impact on the prices of precious metals.