Gold Prices Surge Amidst Positive Market Trends

Gold prices experienced a significant surge, rallying by Rs 550 to Rs 75,700 per 10 grams in the local market due to fresh buying by jewellers and robust international market trends. Silver prices also saw an increase. The market trends were influenced by expectations of rate cuts and global economic factors.

Gold prices surged by Rs 550 to Rs 75,700 per 10 grams in the local market on Tuesday, driven by fresh buying from jewellers and strong international market trends, according to the All India Sarafa Association. The precious metal's rates had closed at Rs 75,150 per 10 grams on Monday.

In the national capital, gold of 99.9% and 99.5% purity was quoted higher at Rs 75,700 and Rs 75,350 per 10 grams, respectively. Traders attributed the rise to increased demand from local jewellers and retailers. Meanwhile, silver prices also jumped by Rs 400 to Rs 94,400 per kg from the previous session's Rs 94,000 per kg.

Market analysts like Manav Modi of Motilal Oswal Financial Services highlighted the recovery on the back of rate cut expectations and Federal Reserve Chair Jerome Powell's comments on inflation. Dilip Parmar of HDFC Securities noted higher gold prices amid ETF demand and speculative buying. Additionally, geopolitical developments and easing bond yields further supported the precious metals.