Representative image of gold jewellery.
Credit: iStock Photo
New Delhi: Gold prices surged Rs 1,200 to hit near a two-week high of Rs 1,30,100 per 10 grams in the national capital on Wednesday, tracking a rally in the international markets, according to the All India Sarafa Association.
Analysts said the rise was mainly driven by renewed expectations of interest-rate cuts by the US Federal Reserve next month.
The precious metal of 99.5 per cent purity also advanced by Rs 1,200 to Rs 1,29,500 per 10 grams (inclusive of all taxes).
On November 13, gold of 99.9 per cent and 99.5 per cent closed at Rs 1,30,900 and Rs 1,30,300 per 10 gram levels, respectively.
Gold extended its gains on Wednesday, climbing to a two-week high amid growing optimism over potential Federal Reserve rate cuts.
"Softer US macroeconomic data further strengthen expectations of a possible cut next month, following recent dovish comments from two Fed officials," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
Silver prices also gained momentum for the second straight day, surging Rs 2,300 to Rs 1,63,100 per kilogram (inclusive of all taxes) on Wednesday.
In the global markets, spot gold climbed by USD 33.50, or 0.81 per cent, to USD 4,164.30 per ounce.
"Gold advanced to USD 4,165 per ounce ahead of US macroeconomic data, including durable goods orders and initial jobless claims, as recent comments from Fed Governors Miran and Waller indicated growing support for additional rate cuts," Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
According to Praveen Singh, AVP, Fundamental Research, Commodities, Mirae Asset Sharekhan, soft US economic data and growing expectations that White House National Economic Council Director Kevin Hassett may become the next Federal Reserve chair have further fuelled the rate-cut sentiment.
"Hassett being closely aligned with President Donald Trump's low rate and economic vision may hasten rate cuts," he stated.
In addition, spot silver was trading 1.71 per cent higher at USD 52.37 an ounce in the overseas trade.
Renisha Chainani, Head - Research at Augmont, said, "A persistent increase in the price of the precious metal is limited by expectations of a peace agreement between Russia and Ukraine."
However, given that investors are now looking to more US data for some encouragement, the fundamental background indicates that the path of least resistance for gold is upward, she added.