Gold revisits ₹80,000-mark; silver rallies ₹500

Gold prices reclaimed the ₹80,000-level in the national capital on Wednesday driven by increased buying from jewellers and stockists, according to the All India Sarafa Assocation.

The precious metal of 99.9% purity rose ₹300 to touch nearly a one-month of ₹80,000 per 10 grams. It settled at ₹79,700 per 10 grams in the previous session on Tuesday.

The price of gold of 99.5% purity climbed ₹300 to ₹79,600 per 10 grams on Wednesday. The yellow metal finished at ₹79,300 per 10 grams on Tuesday.

Extending its winning run for the third day, silver prices also jumped ₹500 to hit almost a month high of ₹92,500 per kg. The white metal had closed at ₹92,000 per kg in the previous market session.

Traders attributed the rise in increased demand from jewellers and retailers in local markets.

On the MCX, gold contracts for February delivery appreciated ₹43 to ₹77,574 per 10 grams.

Silver contracts for March delivery increased ₹224, or 0.25%, to ₹91,097 per kg in futures trade on the Multi Commodity Exchange (MCX) on Wednesday.

Meanwhile, Comex gold futures slipped 0.09% to $2,663.10 per ounce in the international markets.

"Gold rose on Wednesday as sentiment was boosted by strong Chinese demand. China, the leading gold consumer in the world, raised its reserves in December for a second straight month based on official figures published on Tuesday," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Central banks around the world collectively, in November 2024, added 53 tonnes of gold to their reserves, of which the Reserve Bank of India's addition was eight tonnes, the World Gold Council (WGC) said in a report on Monday.

China's purchasing gold for the second straight month is considered bullish for the precious metal (despite higher prices). Traders believe China will keep adding gold to diversify their reserves after Trump's return to the White House, Gandhi said.

Comex silver futures quoted higher in the Asian market hours at $30.71 per ounce.

"The US non-farm payrolls report is due to release on Friday. Softness in US statistics this week could open the door for gains if investors grow more enthusiastic about the Federal Reserve's delivery of interest rate decreases by 2025," Renisha Chainani, Head of Research at Augmont, said.

Meanwhile, the commerce ministry has revised downwards the gold import numbers by $5 billion to $9.84 billion for November, according to the Directorate General of Commercial Intelligence and Statistics (DGCIS).

The DGCIS is an arm of the Ministry of Commerce.

As per the ministry data released last month, the country's gold imports in November reached a record high of $14.86 billion, registering a four-fold increase.