Gold prices increased by ₹4,120 or 3 per cent on Wednesday to ₹150,853 per 10 gram against ₹146,733 in the previous trading session on the back firm trend in the global markets.
It opened on strong note at ₹149,569 per 10 gram and rallied further on global cues, said the Indian Bullion and Jewellers Association of India data.
Silver also gained by ₹9,701 to ₹239,836 per kg against ₹230,135 on Tuesday. The white metal was up by ₹20,576 per kg in last five days.
The yellow metal has gained 8 per cent in last five trading session though it remains much lower than the historic of ₹1.80 lakh crore logged early this year.
Gold for June delivery on MCX jumped one per cent to ₹152,658 while the August contract was up two per cent at ₹155,182 per 10 gram.
Comex gold and silver are extended their gains with gold inching closer to two-week high of $4,750 an ounce and silver edging toward $76, as traders weigh longer-term economic risks and anticipate President Trump’s prime-time address on the Iran conflict.
Despite these gains, both metals ended March lower, with gold down 11 per cent and silver by 20 per cent even as geopolitical tensions intensified.
Prithviraj Kothari, President, India Bullion and Jewellers Association said gold has regained 15 per cent and silver almost 25 per cent from their recent lows as the pressure on forced liquidation and margin call pressure eased.
Prices are expected to sustain and head towards ₹158,000 and ₹258,000 respectively for gold and silver amid bargain hunting and value buying by retail investors and central banks at lower levels. All negative news of liquidation due Iran- Israel war seems to be discounted in the prices for now, he added.
Kaynat Chainwala, AVP-Commodity Research, Kotak Securities said the metals’ rebound follows signals from Iran suggesting a potential end to the conflict and reports that the US may scale back military operations.
Falling US treasury yields and a softer dollar also helped lift prices by lowering the opportunity cost of holding non-yielding assets. Looking ahead, prices are likely to remain sensitive to Trump’s address and this week’s US economic releases, she said.