Gold jumps Rs 1,400 to Rs 79,300 per 10 gm; silver flat: Industry body

Gold prices jumped Rs 1,400 to Rs 79,300 per 10 grams in the national capital on Thursday due to fresh buying by jewellers and retailers, according to the All India Sarafa Association. 

The precious metal of 99.9 per cent purity had closed at Rs 77,900 per 10 grams in the previous session. However, silver traded flat at Rs 93,000 per kg on Thursday.

 

Price of gold of 99.5 per cent purity zoomed Rs 1,400 to Rs 78,900 per 10 grams against the previous close of Rs 77,500 per 10 grams on Wednesday. 

Meanwhile, in futures trade on the MCX, gold contracts for December delivery bounced Rs 568, or 0.75 per cent, to trade at Rs 76,602 per 10 grams. 

 

"Gold prices surged higher as geopolitical tensions reignited safe-haven demand, with renewed concerns over nuclear risks in the Russia-Ukraine conflict. 

"Reports of escalating tensions and global unease drove gold prices on comex," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said. 

The uncertainty surrounding the situation continues to support a bullish bias for gold. Elevated volatility is expected in the short term due to geopolitical developments, Trivedi added. 

Silver contracts for December delivery rose Rs 318, or 0.35 per cent, to Rs 90,407 per kg on the MCX. 

Globally, Comex gold futures jumped $19.80 per ounce, or 0.74 per cent, at $2,695.40 per ounce. 

"Gold rallied as investors returned to the safe haven following the intensification of the crisis between Russia and Ukraine. After a recent strike with US-made long-range missiles, Ukraine deployed UK-built missiles into Russian territory," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said. 

Ukraine on Thursday said Russia launched an intercontinental ballistic missile overnight targeting Dnipro city in the central-east of the country, which, if confirmed, would be the first time Moscow has used such a missile in the war. 

This development has increased the possibility of a wider crisis, thereby boosting the demand for gold as a safe haven asset.

Silver also quoted 0.29 per cent higher at $31.53 per ounce in the Asian market hours. 

According to Praveen Singh -- Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, traders will watch the US macroeconomic data, including Philadelphia Fed business conditions, existing home sales and jobless claims. 

The data will release later on Thursday, which, in turn, provide cues on the US Federal Reserve's policy interest rates.