Gold prices surge by ₹300 to ₹73,150; silver slips by ₹300

Gold prices rose ₹300 to ₹73,150 per 10 grams in the national capital on Wednesday amid a jump in precious metal rates in the international markets.

The yellow metal of 99.9% purity had ended at ₹72,850 per 10 grams in the previous session on Tuesday.

However, silver prices declined by ₹300 to ₹83,200 per kilogram from ₹83,500 per kg in the previous close, according to the All India Sarafa Association.

Extending gains for the third straight session, gold of 99.9% and 99.5% purity climbed by ₹300 each to ₹73,150 and ₹72,800 per 10 grams, respectively.

Traders said gold prices saw an uptrend due to a rise in domestic demand as well as global influences.

Globally, Comex gold is trading at USD 2,512.30 per ounce, up by USD 4.50 per ounce.

"Comex gold consolidated near record highs, closing higher for the fifth consecutive session, buoyed by a weaker dollar and decline in US Treasury yields as the US Producer Price Index data rose.

Additionally, "safe haven demand for gold increased due to geopolitical tensions," Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said.

Silver was also quoting higher at USD 27.98 per ounce in the international markets.

According to market experts, gold prices are trading steady to firm after hitting their all-time highs, as the US dollar and treasury yields are down amid rising expectations for an interest rate cut from the Fed on further signs of cooling inflation.

"The yellow metal is slightly higher ahead of the crucial US Consumer Price Index (CPI) inflation data to be released later on Wednesday.

"Further, soft inflation data will increase the US Federal Reserve (Fed) interest rate cut possibility and will be positive for gold prices," Praveen Singh - Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said.

Weak Chinese demand is bearish for the yellow metal, however, markets are focusing mainly on the US economy and its monetary policy path, Singh added.