Gold rebounds Rs 2,600 to Rs 1,24,400/10g on safe-haven demand ahead of US Fed policy outcome
New Delhi: Gold prices on Wednesday jumped by Rs 2,600 to Rs 1,24,400 per 10 grams in the national capital, reversing a two-session decline amid renewed safe-haven buying ahead of the US Federal Reserve’s policy decision.
According to the All India Sarafa Association, gold of 99.5% purity rose to Rs 1,23,800 per 10 grams (inclusive of taxes) from the previous close of Rs 1,21,200, while gold of 99.9% purity had settled at Rs 1,21,800 per 10 grams on Tuesday.
“Gold prices rebounded, reclaiming the crucial USD 4,000 per ounce mark ahead of the much-anticipated FOMC (Federal Open Market Committee) policy outcome,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Silver also staged a strong recovery, soaring by Rs 6,700 to Rs 1,51,700 per kilogram (inclusive of taxes) from Rs 1,45,000 a day earlier. Gandhi attributed the rebound to bargain hunting and rising geopolitical tensions in the Middle East, which boosted demand for safe-haven assets.
In the international market, spot gold climbed 1.95% or USD 77.26 to USD 4,029.53 per ounce, snapping a three-day losing streak. “Spot gold is trading around USD 4,020 per ounce as the metal recovers from Tuesday’s low of USD 3,886 ahead of the Fed’s monetary policy decision,” said Praveen Singh, Head of Commodities and Currencies at Mirae Asset Sharekhan.
Singh added that while gold is “not entirely out of the woods,” an expected 25 basis point rate cut by the Fed could help limit further downside.
Meanwhile, the dollar index rose 0.15% to 98.82, while easing US-China trade tensions may restrict additional gains in safe-haven demand, analysts noted.
Spot silver in global markets advanced 2.85% to USD 48.40 per ounce. Persistent geopolitical concerns—particularly the continued US government shutdown and the cancellation of a planned meeting between US President Donald Trump and Russian President Vladimir Putin following new sanctions on Moscow’s oil firms—are also seen supporting precious metals, experts said.
