Gold rises Rs 650 to Rs 1.66 lakh/10g in Delhi

Gold price rose by Rs 650 to Rs 1.66 lakh per 10 grams in the national capital on Thursday after the rupee fell to a record low against the US dollar amid persistent geopolitical tensions.

According to the All India Sarafa Association, gold of 99.9 per cent purity rose Rs 650 to Rs 1,66,000 per 10 grams (inclusive of all taxes) from Wednesday’s closing of Rs 1,65,350 per 10 grams.

This is the third consecutive day of fall for the precious metal.

“Gold traded with modest gains in the domestic market, supported by positive cues from the international market and continued weakness in the Indian rupee. However, the upside remained limited as higher prices weighed on physical demand and kept overall buying interest subdued,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.

On Thursday, the rupee weakened further and fell to a record low of 95.73 (provisional) against the US dollar, amid a strong dollar and worries over inflation amid elevated energy prices.

Following the recent import duty hike, the sharp jump in domestic prices triggered investor selling and delayed fresh purchases, further weakening already soft physical demand, he added.

“As a result, gold discounts in India widened sharply, with spot market discounts expanding to a record level of more than USD 200 per ounce,” Gandhi said.

Silver prices, however, snapped its three-day winning streak by declining Rs 900 to Rs 2,96,600 per kilogram (inclusive of all taxes). In the previous, session, the white metal had settled at Rs 2,97,500 per kg, as per the association.

In the international market, spot gold edged up to USD 4,704.30 per ounce, while silver slipped 0.57 per cent to USD 87.04 per ounce.