Gold surges Rs 2,000 to Rs 1.58 lakh/10g; silver rises Rs 730 in Delhi

NEW DELHI: Gold price climbed Rs 2,000 to Rs 1.58 lakh per 10 grams in the national capital on Tuesday, extending gains for a second straight session as retailers and stockists stepped up buying.

The yellow metal of 99.9 per cent purity appreciated by Rs 2,000 to Rs 1,58,800 per 10 grams (inclusive of all taxes) from Monday's closing level of Rs 1,56,800 per 10 grams.

Silver also advanced Rs 730 to Rs 2,40,730 per kilogram(inclusive of all taxes), after remaining flat at Rs 2,40,000 per kg for two sessions, according to the All India Sarafa Association.

Globally, spot gold traded 0.5 per cent lower to USD 4,394.57 per ounce, and silver dropped a little over 1 per cent to USD 65.08 per ounce.

Gold was hovering around USD 4,392 per ounce as crude oil rebounded on supply concerns emanating from West Asia, Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.

Oil prices gained after the 60-day US-Iran ceasefire expired on Monday. While the period can be extended, neither side is willing to do so, he said.

US President Donald Trump said Washington had an edge over Tehran as the naval blockade continued, while Iran had asked its military to remain steady.

The global investment story, however, continues to provide a cushion. Total known gold-backed exchange-traded fund holdings rose again on Monday to 97.39 million ounces, Singh added.

Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said spot silver eased towards USD 65 per ounce, weighed down by a firm US Treasury yields and some profit-taking.

Despite the pullback, Chainwala said the broader backdrop remained constructive for bullion, supported by softer Fed rate expectations, sustained central bank buying led by China and steady investment demand.

The focus shifts to the minutes of the Federal Open Market Committee's July meeting for fresh insights on the US monetary policy outlook.

"With the Fed's policy path yet to be clarified at Jackson Hole Symposium, gold and silver may see continued two-way volatility in the near term," Chainwala added.