Gold prices rose Rs 200 to Rs 81,300 per 10 grams in the national capital on Tuesday amid fresh buying by local jewellers and retailers and strong global trends, according to the All India Sarafa Association.
The precious metal of 99.9 per cent purity retreated from a record high in the national capital on Monday, declining Rs 1,300 to Rs 81,100 per 10 grams.
Silver jumped Rs 1,800 to Rs 96,700 per kg on Tuesday. In the previous session, it had closed at Rs 94,900 per kg.
Gold of 99.5 per cent purity appreciated by Rs 200 to Rs 80,900 per 10 grams against the previous close of Rs 80,700 per 10 grams on Monday.
Advertisement
Traders attributed the rise in yellow metal prices to a pick-up in demand by local jewellers and retailers in the domestic markets.
Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery slipped Rs 18 or 0.02 per cent to trade at Rs 78,404 per 10 grams.
During the day, the precious metal hit a high of Rs 78,580 per 10 grams and a low of Rs 78,191 per 10 grams.
"Gold prices are currently facing minor resistance near the Rs 78,500 level, with a similar hurdle in the international market at around USD 2,745-2,750 per ounce. This resistance is holding firm, as the upcoming US election adds a layer of caution for investors.
Advertisement
"Additionally, the US Federal Reserve's interest rate cut decision on November 7 is expected to keep gold prices volatile throughout the week," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.
However, silver contracts for December delivery rose Rs 239 or 0.25 per cent to trade at Rs 94,523 per kg.
In the international markets, Comex gold futures rose USD 1.50 per ounce or 0.05 per cent at USD 2,747.70 per ounce.
According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, comex gold surged on Monday, supported by safe-haven demand following recent polling data that suggested a tight US presidential race, with no clear frontrunner between Kamala Harris and Donald Trump ahead of Tuesday's vote.
Last week, gold hit a new all-time high of USD 2,801.80 per ounce amid the closely contested election, reaffirming its status as a safe-haven asset.
However, gold retreated from its highs as strong US economic data raised expectations that the Federal Reserve may take a cautious approach to monetary easing, Chainwala added.
In the Asian market hours, Comex silver futures traded 0.37 per cent higher at USD 32.73 per ounce.
"Traders remained cautious over the US presidential election and avoided fresh directional bets ahead of the results of a major macroeconomic event," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
Just one email a week