Gold Prices Surge for Second Straight Session in Delhi

Gold prices surged for the second consecutive session in Delhi on Friday, climbing by Rs 1,400 to reach nearly Rs 1.61 lakh per 10 grams. This comes as buying interest remained strong in the domestic bullion market, despite investors taking a cautious stance ahead of key global economic data releases.

The price of gold rose from Thursday's closing level of Rs 1,59,500 per 10 grams to Rs 1,60,900 per 10 grams (inclusive of all taxes), according to local traders. In contrast, silver prices remained unchanged at Rs 2,40,500 per kilogram.

Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, expressed concerns over dealer inventories due to subdued investment demand for silver. He noted that around 2,000 tonnes of silver ordered by Indian dealers could add to the inventory overhang if demand does not recover.

The global market saw spot gold fall marginally to USD 4,465.34 per ounce, while silver traded 0.38 per cent lower at USD 66.72 per ounce. Traders are taking a cautious stance ahead of the US non-farm payrolls report, which is contributing to a range-bound movement in the market.

Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, stated that market attention is firmly focused on the US employment data and next week's inflation figures for further cues on the US Federal Reserve's monetary policy outlook. Weaker-than-expected data could extend the dollar's decline and support gold prices, while stronger figures or renewed hawkish signals from the Fed could revive rate-hike expectations and weigh on prices.