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Gold prices rallied by ₹418 per 10 gm to ₹33,204 on Thursday in the wake of uncertainty in the global economy and a weak rupee.
Geopolitical concerns, especially in West Asia, and feeble economic releases from China and the US, raised the yellow metal’s safe-haven demand globally.
The demand for gold has been weak over the last few months with no major trigger, while prices have been languishing with a buoyant stock market and other investment avenues looking attractive.
A weak global growth forecast amid rising trade war tensions and anticipation of a rate cut in the US bolstered gold sentiment on Thursday. Gold trades higher during times of economic or political uncertainties.
Anuj Gupta, Deputy Vice-President (Commodities & Currencies), Research, Angel Broking, said bullion prices rallied on the back of weakness in the dollar on account of weak US bond yields and expectation of an interest rate cut by the US Fed.
“We have witnessed a rally in bullion prices for the last two weeks on the geopolitical tension between US and Iran and trade war tension between US and China,” he added.
Bullion may trade on a positive note in the coming weeks on rising tensions between the US and China, he said, adding that low US bond yields are also supporting bullion prices.
Gold (0.995 purity) inched up to ₹33,071 (₹32,655) per 10 gm,while 0.916 gold was up at ₹30,415 (₹30,032) per 10 gm. The price of silver also rallied to ₹37,385 (₹36,750) a kg.
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