Gold Prices Soar in Delhi as Domestic Buying Interest Remains Strong

Gold prices in India's capital city of New Delhi surged by Rs 1,400 to Rs 160,900 per 10 grams on Friday due to strong domestic buying interest. This is the second consecutive day that gold prices have risen. Silver prices remained unchanged at Rs 240,500 per kilogram.

According to local traders, the rise in gold prices came as buying interest remained firm despite investors turning cautious ahead of key global economic data releases. The market is waiting for the US non-farm payrolls report and inflation figures, which could impact the trajectory of interest rates and outlook for precious metals.

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, said that domestic silver prices have corrected over 40% from their January peak. He added that around 2,000 tonnes of silver ordered by Indian dealers could add to the inventory overhang if demand does not recover.

Spot gold fell marginally to USD 4,465.34 per ounce globally, while silver traded 0.38% lower at USD 66.72 per ounce. Traders are taking a cautious stance ahead of the US employment data releases, which could influence the market's movement.