India News | Gold Rises Rs 250 to Rs 78,850/10g; Silver Climbs Rs 300

New Delhi, Dec 26 (PTI) Gold prices increased Rs 250 to Rs 78,850 per 10 grams in the national capital on Thursday amid a firm global trend, according to the All India Sarafa Association.

The yellow metal had settled at Rs 78,600 per 10 grams on Tuesday.

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Silver extended its rally for the third straight session by climbing Rs 300 to Rs 90,800 per kg on Thursday. The metal had ended at Rs 90,500 per kg in the previous close.

The commodities market was closed on Wednesday on the occasion of Christmas.

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The price of 99.5 per cent purity advanced Rs 250 to Rs 78,450 per 10 grams from the previous close of Rs 78,200 per 10 grams.

Traders attributed the climb in gold prices to firm trends in the overseas markets which aided in bullion prices.

In futures trade on the Multi Commodity Exchange (MCX), gold contracts for February delivery advanced Rs 442 or 0.58 per cent to Rs 76,712 per 10 grams.

"Gold prices edged higher on Thursday, supported by a slightly weaker dollar as markets resumed trading post-Christmas.

"However, gains were capped as investors remained cautious following the US Federal Reserve's hawkish stance, signalling a less aggressive rate-cutting outlook," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.

Silver contracts for March delivery bounced Rs 343 or 0.38 per cent to Rs 89,669 per 10 grams on the exchange.

With the holiday-shortened week, thin trade volumes reflected traders' hesitation to make significant moves, Trivedi said.

Globally, Comex gold futures rose USD 9.10 per ounce or 0.35 per cent to USD 2,644.60 per ounce.

"Gold moved higher on Thursday as traders showed an interest in safe-haven buying following escalating tensions due to Russia-Ukraine war.

"Market participants will await the US macroeconomic data -- weekly unemployment claims data -- due to release later on Thursday which will provide more insights on the course of direction for bullion prices," Gandhi said.

Comex silver futures traded 0.19 per cent higher in the Asian trading session at USD 30.34 per ounce.

"Additionally, markets remain cautious due to uncertainties surrounding potential policies of a second Trump administration.

"A stronger US dollar and improving risk sentiment are also pressuring gold. Prices have stabilised above USD 2,640 per ounce, trading in a narrow range amid low holiday volumes and the extended year-end rally in US stocks," Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.

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