Gold Prices Rebound on Bargain Buying and Easing Crude Oil Rates
Gold prices rebounded in India on Wednesday after three consecutive sessions of losses. Traders resorted to bargain buying, which helped boost sentiment towards bullion.
The price of gold rose by ₹1,200 to ₹1,55,600 per 10 grams (inclusive of all taxes) from Tuesday's closing level of ₹1,54,400 per 10 grams, according to local traders. Silver also surged, jumping ₹7,400 to ₹2.42 lakh per kilogram (inclusive of all taxes) against the previous close of ₹2,34,600 per kg.
The gold price gained $53.96, or 1.3%, to $4,348.10 per ounce in global markets, while silver rose 1.5% to $64.61 an ounce. A softer tone in US Treasury yields ahead of the US Federal Reserve's policy decision provided additional support to precious metals.
Markets are expecting a 25 basis points rate hike by the Federal Reserve in this meeting. The uncertainty over the Fed's stance going forward reflected gold's resilience despite a sharp rise in oil prices on Tuesday, said Praveen Singh, Head of Commodities at Mirae Asset Sharekhan.