Gold prices jump, silver rates surge

NEW DELHI, Jan 07 (Reuters): Gold prices rebounded today, jumping Rs 150 to Rs 32,650 per 10 gram at the bullion market.

Higher global rates and buying by local jewellers supported domestic gold prices.

Tracking gold, silver rates today surged Rs 410 to Rs 40,010 per kg on higher offtake by industrial units and coin makers.

In Delhi, gold of 99.9 per cent and 99.5 per cent purities rallied by Rs 150 each to Rs 32,650 and Rs 32,500 per 10 gram, respectively. Gold prices had lost lost Rs 190 in the previous session.

Sovereign, however, today remained flat at Rs 25,200 per piece of eight gram. Silver ready prices went up by Rs 410 to Rs 40,010 per kg and weekly-based delivery by Rs 136 to Rs 39,309 per kg.

Silver coins, however, remained unaltered at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

In global markets, gold prices inched higher, supported by a weak dollar on expectations that the US Federal Reserve may pause on its monetary tightening cycle in 2019. Spot gold prices rose 0.3 per cent to $1,288.65 per ounce.

Dovish remarks from Fed chairman Jerome Powell on Friday triggered a global rebound in equities. Powell said that the central bank would be patient and flexible in steering the course of interest rates.

The bullion is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding bullion.

Gold traders will now be looking towards trade negotiations between US and China, starting today.

Back in India, at the Multi Commodity Exchange or MCX, February gold futures price rose Rs 207 to Rs 31,663 per 10 grams in a business turnover of 6,756 lots.

Meanwhile, the rupee today hit five-month high of 69.24 against the US dollar, before erasing early gains.

Meanwhile, the government said on Friday that there are no specific measures or mechanism to fix a single daily price for gold in India.

"Gold is widely traded in local markets across the country. At present, there are no specific measures or mechanism to fix a single daily gold price in the country," Minister of State for Consumer Affairs C R Chaudhary said in a written reply to the Rajya Sabha.

He said that the price generally depends on import rate, basic customs duty, tax and logistics cost, purity among other reasons.