Daijiworld Media Network - New Delhi
New Delhi, Aug 7: Gold prices extended their winning streak for a third consecutive session on Thursday, surging by Rs 3,800 to a seven-week high of Rs 1.53 lakh per 10 grams in the national capital, driven by a weaker rupee and firm global trends.
The price of 99.9 per cent purity gold rose to Rs 1,53,800 per 10 grams (inclusive of all taxes), up from Wednesday's closing level of Rs 1,50,000 per 10 grams.
Gold had last traded at comparable levels on June 18, when it settled at Rs 1,53,440 per 10 grams.
Silver also gained Rs 2,100 to Rs 2,34,800 per kg (inclusive of all taxes), compared with Rs 2,32,700 per kg in the previous session.
Market participants said depreciation of the rupee made imported bullion more expensive in the domestic market, while gains in international gold prices, supported by a weaker US dollar and easing US Treasury yields, further boosted sentiment.
The rupee depreciated by 16 paise to settle at 95.24 (provisional) against the US dollar on Thursday, amid slight gains in the dollar index and a modest rise in US Treasury bond yields.
According to Gaurav Garg, Head of Research at Lemonn Markets Desk, gold climbed to a seven-week high as a softer US dollar, lower Treasury yields and expectations of a diplomatic breakthrough in the West Asia conflict strengthened demand for the precious metal.
In the international market, spot gold edged higher to $4,264.24 per ounce, while spot silver traded lower at $61.80 per ounce.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said gold prices also gained after Iran indicated that an agreement in principle had been reached with Oman regarding the management of maritime traffic through the Strait of Hormuz.
He added that sustained investor demand also supported prices, with Chinese gold exchange-traded funds recording inflows for the 14th consecutive trading session.
Jateen Trivedi, Vice-President (Research Analyst – Commodity and Currency) at LKP Securities, said investors are now awaiting the US non-farm payrolls and unemployment data scheduled for release on Friday, as the figures are expected to influence expectations regarding the US Federal Reserve's interest rate trajectory.