Mumbai: Gold prices staged a sharp rebound in New Delhi on Wednesday, snapping a three-session losing run as bargain hunters returned to the market and softer crude oil prices improved sentiment towards bullion.
Gold of 99.9% purity climbed ₹1,200 to ₹1,55,600 per 10 grams, inclusive of taxes, from Tuesday’s close of ₹1,54,400, according to local traders.
Silver joins rebound
Silver also regained momentum after remaining unchanged for two consecutive sessions. The white metal surged ₹7,400 to ₹2,42,000 per kilogram, inclusive of taxes, compared with its previous close of ₹2,34,600.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, attributed gold’s recovery to bargain buying following three straight sessions of declines.
He said the retreat in crude oil prices helped improve appetite for bullion, while softer US Treasury yields provided additional support ahead of the US Federal Reserve’s monetary policy announcement.
Global bullion strengthens
Internationally, spot gold advanced $53.96, or 1.3%, to $4,348.10 an ounce. Silver gained 1.5% to $64.61 an ounce, tracking the broader recovery across precious metals.
Spot gold rose more than 1% during the session and traded around $4,350 an ounce, although prices remained broadly anchored around the $4,300 region as investors awaited the Federal Open Market Committee’s policy decision.
Fed decision in focus
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said gold’s resilience despite Tuesday’s sharp increase in crude oil prices reflected uncertainty surrounding the Federal Reserve’s policy trajectory.
Also read: Silver Falls Rs 2,738 This Week, Gold Slips Rs 1,042
According to Singh, investors are closely watching whether an expected interest-rate increase would prove to be a one-off move or signal the beginning of a broader tightening cycle.
Markets are pricing in a 25-basis-point rate increase by the Federal Reserve at the meeting. The policy signal, particularly guidance on future rates, is expected to remain a key trigger for gold prices, Treasury yields and the dollar in the near term, with bullion traders likely to closely track any shift in the central bank’s inflation and growth assessment.
