Gold Rebounds ₹600 To ₹1,24,700/10g Amid Firm Global Cues

 Snapping the two-day losing streak, gold prices on Thursday rebounded by ₹600 to ₹1,24,700 per 10 grams in the national capital on a fresh wave of buying by traders and firm global cues.

The precious metal of 99.5 per cent purity increased by ₹600 to ₹1,24,100 per 10 grams (inclusive of all taxes), according to All India Sarafa Association. The metal had closed at ₹1,23,500 per 10 grams on Tuesday.

In the local bullion market, gold of 99.9 per cent purity had ended at ₹1,24,100 per 10 grams in the previous market session.

Silver prices rallied by ₹1,800 to ₹1,53,300 per kilogram (inclusive of all taxes) on Thursday. It had settled at ₹1,51,500 per kg on Tuesday.

Bullion markets were closed on Wednesday on account of the Prakash Gurpurb Sri Guru Nanak Dev holiday.

Globally, spot gold rose USD 28.96, or 0.73% to USD 4,008.19 per ounce while spot silver was trading 1.22% higher at USD 48.60 an ounce.

"Gold advanced on Thursday buoyed by safe haven demand and a modest decline in the US dollar. The ongoing government shutdown has become the longest in US history, with no resolution in sight.

"This prolonged shutdown has created uncertainty in financial markets, which is benefiting safe-haven precious metals," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, retreated by 0.29% to 99.97, after surging to a multi-month high in the previous session, which also acted as a tailwind for precious metals.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, "Optimism around the US-China trade deal could limit further upside in gold prices. Market participants will closely watch the upcoming US Manufacturing and Non-Manufacturing PMI data for cues"