New Delhi, Sep 18: Gold staged a sharp comeback on Friday, rising Rs 1,600 to Rs 1.56 lakh per 10 grams in the national capital as retreating crude oil rates eased inflation concerns and gave investors room to return to bullion after the recent sell-off.
The yellow metal of 99.9 per cent purity appreciated Rs 1,600 to Rs 1,56,600 per 10 grams (inclusive of all taxes) from Thursday’s closing level of Rs 1.55 lakh per 10 grams, according to local traders.
Silver also joined the rebound, climbing Rs 5,000 to Rs 2.47 lakh per kilogram (inclusive of all taxes). The white metal had ended flat at Rs 2.42 lakh per kg in the preceding session.
“Gold recovered sharply after the recent sell-off as the dollar and US Treasury yields eased, with investors reassessing positions following the Federal Reserve’s interest rate hike,” Gaurav Garg, Head of Research at brokerage platform Lemonn, said.
Silver outperformed gold, while oil fell for a third straight session to USD 101-a-barrel as expectations of restored Saudi supply and alternative shipping routes eased immediate supply-disruption fears.
However, tensions in West Asia remain a risk, he added.
The recovery tracked global bullion markets, with spot gold rising USD 50.96, or 1.17 per cent, to USD 4,392.78 per ounce. Silver advanced 3.10 per cent to USD 67.21.
“Spot gold has extended its counter-intuitive rally to the second straight day as decline in oil prices negates the hawkish FOMC monetary policy decision to some extent,” Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said.
Gold-backed ETF holdings recorded net inflows for the eighth consecutive day, taking total global holdings to 100.39 million ounces (Moz), up 1.44 Moz year-to-date, he said.
However, elevated US dollar and Treasury yields capped bullion’s gains. ( PTI )
