Gold hits fresh all-time high, jumps by Rs 250

The precious metal had settled at Rs 78,450 per 10 grams in the previous close on Friday.

New Delhi: Gold prices appreciated by Rs 250 to hit a fresh all-time high of Rs 78,700 per 10 grams on Monday, October 7, on account of consistent buying support from jewellers and firm trends in the overseas markets.

The precious metal had settled at Rs 78,450 per 10 grams in the previous close on Friday.

However, silver declined Rs 200 to Rs 94,000 per kg from Rs 94,200 per kg on Friday, according to the All India Sarafa Association.

Meanwhile, gold of 99.5 per cent purity climbed Rs 200 to hit an all-time high level of Rs 78,300 per 10 grams. The yellow metal had closed at Rs 78,100 per 10 grams in the previous session.

Why did gold price spike?

Traders attributed the gains in gold prices to an increase in the domestic demand by stockists and retailers.

Besides, the decline in equity markets also aided the rally in the precious metal as investors moved towards safe-haven assets such as gold, they added.

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In the Asian trading hours, Comex gold is trading 0.14 per cent higher at USD 2,671.50 per ounce.

“COMEX gold remains steady, as tempered expectations for aggressive interest rate cuts by the US Federal Reserve counter safe-haven demand amid ongoing tensions in the Middle East.

“Gold prices may continue to trade in a narrow range as caution prevails ahead of upcoming US inflation numbers,” AVP-Commodity Research at Kotak Securities, Kaynat Chainwala said.

On the other hand, silver fell 0.61 per cent to USD 32.20 per ounce in the international markets.

Traders scaled back expectations for a 50 basis points interest rate cut in November. Further, escalating tensions in the Middle East increasing the risk premium for bullion prices,” Manav Modi, Senior Analyst – Commodity Research at Motilal Oswal Financial Services Ltd, said.

According to Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services, key events to watch during the week would be US Consumer Price Index (CPI) and consumer sentiments data in the latter half of the week and an eye on developments in the Middle East conflict which will provide direction for the gold prices.