Gold climbs ₹700 to ₹79,700 per 10 gm; silver jumps ₹1,300

Gold prices climbed ₹700 to ₹79,700 per 10 grams in the national capital on Tuesday due to fresh buying by jewellers and retailers and depreciation in the rupee, according to the All India Sarafa Association.

On Monday, the precious metal ended at ₹79,000 per 10 grams.

Silver rose sharply by ₹1,300 to hit a three-week high of ₹92,000 per kg on Tuesday. The white metal had closed at ₹90,700 per kg in the previous session.

The price of gold of 99.5% purity rallied ₹700 to ₹79,300 per 10 grams from the previous close of ₹78,600 per 10 grams on Monday.

Traders said gold prices increased due to strong trends in the overseas markets and a rise in domestic demand that aided in bullion prices.

On Tuesday, the rupee fell 5 paise to settle at 85.73 (provisional) against the US dollar, as higher crude oil prices and outflow of foreign funds continued to weigh on the local unit.

In futures trade on the MCX, gold contracts for February delivery appreciated ₹122, or 0.16%, to ₹77,280 per 10 grams.

Silver contracts for March delivery also rallied ₹551, or 0.61%, to ₹91,105 per kg in the futures trade on the Multi Commodity Exchange (MCX).

Comex gold futures rose 0.28% to $2,654.90 per ounce in the international markets.

"Gold is hovering around the $2,635 level amid mixed cues. Uncertainty around upcoming US President Trump's policy attracts some haven flows and provides support for precious metals," Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.

Comex silver futures in the Asian trading hours traded 0.73% higher at $30.81 per ounce.

"Market participants are closely watching the US ISM Services PMI and JOLTS job openings data to be released later on Tuesday, alongside non-farm employment change and unemployment claims reports," Abans Holdings' Chief Executive Officer Chintan Mehta said.

Investors will also focus on upcoming Federal Open Market Committee (FOMC) member speeches scheduled for later this week, which will gauge the Federal Reserve's next policy move, Mehta added.

According to Renisha Chainani, Head of Research at Augmont, this week is critical for gold traders, as they will closely monitor key economic data.

"Traders are expected to be focused on how the NFP data compares to last week's inflation numbers. If the US jobs report meets or falls short of forecasts, it may confirm the Federal Reserve's view that a pause in the interest rate-cutting cycle is on the way.

"The price of gold is heavily reliant on a dovish monetary policy. If the Fed cuts rates less aggressively, this might negatively impact gold prices and the economy," Chainani said.