New Delhi, Aug 26 (PTI) Gold prices jumped by Rs 600 to Rs 1,00,770 per 10 grams in the national capital on Tuesday, supported by a weak rupee and firm global trends, according to the All India Sarafa
Association.
The precious metal of 99.9 per cent purity had closed at Rs 1,00,170 per 10 grams on Monday.
Gold of 99.5 per cent purity climbed Rs 500 to Rs 1,00,400 per 10 grams (inclusive of all taxes) from the last close of Rs 99,900 per 10 grams.
Silver prices rallied by Rs 3,000 to revisit the all-time high level of Rs 1,18,000 per kg (inclusive of all taxes). The white metal had finished at Rs 1,15,000 per kg on Monday, according to the Sarafa Association.
"Gold prices rose on Tuesday as investors sought traditional safe-haven assets after the US President Donald Trump's decision to remove Federal Reserve Governor Lisa Cook, which raised concerns about the independence of the central bank," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
Further, President Trump's action exerted additional pressure on the Fed's leadership to lower interest rates soon, a move that typically benefits non-yielding gold, Gandhi added.
The rupee depreciated by 12 paise to close at 87.68 (provisional) against the US dollar on Tuesday, tracking weak domestic markets after the US issued a draft notice on plans to implement an additional 25 per cent tariff on Indian products.
Globally, spot gold is trading 0.37 per cent higher at USD 3,378.37 per ounce in New York.
"Spot gold surged, buoyed by renewed dollar weakness amid concerns over the US central bank's independence after President Trump dismissed Fed Governor Lisa Cook," Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
However, spot silver fell 0.21 per cent to trade at USD 38.48 per ounce.
"Uncertainty around tariffs is adding another layer of support. Trump's move to impose an additional 25 per cent tariffs on India starting on August 27, coupled with escalating tensions in the Russia-Ukraine war, has left traders sceptical about any meaningful progress in peace talks," Chintan Mehta, CEO, Abans Financial Services, said.
Meanwhile, central banks, particularly in China and Turkey, are continuing to build their gold reserves, providing additional momentum. Investors will focus on key US macroeconomic data releases, including jobless claims and GDP revisions, to gauge the Fed's next steps for the interest rate cycle, Mehta added. PTI HG HG MR
