Delhi bullion market saw a sharp rise in gold prices. Gold prices rose by ₹1,300 to ₹1,25,900 per 10 grams due to weaker dollar and global trends, according to the All India Sarafa Association. Meanwhile, 99.9% pure gold closed at ₹124,600 per 10 grams in the previous session (i.e. Friday).
Saumil Gandhi, senior analyst at HDFC Securities said that the main reason behind the increase in gold prices is the weakness of the US dollar. Recent data on the US economy has raised investors' expectations of a Federal Reserve interest rate cut next month. he said, "A weaker dollar has strengthened gold, leading to an uptrend in prices."
Along with gold, silver prices also saw a sharp rise. Silver prices rose by ₹2,460 to ₹1,55,760 per kg on Monday, from ₹1,53,300 per kg on Friday.
In the international market, spot gold rose by USD 83.12, or 2.08%, to USD 4,082.84 an ounce. Meanwhile, silver was trading up 3.30% at USD 49.93.
Jatin Trivedi, research analyst at LKP Securities said, "Gold has been strengthened by the reopening of the US government and a weaker dollar. The market is now focusing on the CPI and WPI inflation data from both the US and India, which will determine the direction of the market next week."
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