Gold rises Rs 300 to Rs 88,500 per 10 gm, silver climbs Rs 800

New Delhi, Feb 18 (PTI) Gold prices rose Rs 300 to Rs 88,500 per 10 grams in the national capital on Tuesday amid firm global trends, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity had ended at Rs 88,200 per 10 grams on Monday.

Gold of 99.5 per cent purity advanced Rs 300 to Rs 88,100 per 10 grams.

Silver prices also jumped Rs 800 to Rs 99,000 per kg from the previous close of Rs 98,200 per kg.

In futures trade on the MCX, gold contracts for April delivery jumped Rs 435 to Rs 85,490 per 10 grams.

"Gold continued its positive trend, driven by persistent global uncertainty over tariffs. With banks and funds maintaining high allocations to the safe-haven asset, gold remains well-supported," Jateen Trivedi, VP Research Analyst -- Commodity and Currency, LKP Securities, said.

Key events like Trump's speech on Wednesday, along with the Federal Reserve and RBI meeting minutes, will add to the market's volatility in the coming sessions, Trivedi said.

Silver futures for March delivery also appreciated Rs 439 to Rs 96,019 per kg on the Multi Commodity Exchange (MCX).

In the international markets, Comex gold futures for April delivery climbed USD 24.94 per ounce, or 0.86 per cent, to USD 2,925.64 per ounce in the global markets.

"Comex is trading above USD 2,925 as investors continue to monitor tensions between the US and European Union, as well as developments in Ukraine peace talks," Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.

Meanwhile, spot gold in the overseas markets rose nearly USD 16 to USD 2,912.50 per ounce.

"Gold gained modestly on Tuesday, maintaining its position as the primary safe-haven asset and an appealing inflation hedge.

"However, further gains were capped due to hawkish remarks from Fed member Patrick Harker, who advocated on Monday night for the central bank to keep interest rates unchanged," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Comex silver futures for March delivery in the Asian market hours quoted 0.47 per cent higher at USD 33 per ounce.

On Monday, the commerce ministry said its gold imports in January rose 40.79 per cent to USD 2.68 billion on account of increasing domestic demands.

Gold imports stood at USD 1.9 billion in January 2024, according to commerce ministry data.

Cumulatively, imports during April-January this fiscal year rose 32 per cent to USD 50 billion against USD 37.85 billion in the same period last fiscal year, it said.

The increase in imports also indicates strong investor confidence in the precious metal as a safe asset. The other reasons include asset diversification towards gold due to global uncertainties, increasing demand from banks, and cut in customs duties, it added. PTI HG TRB

Source: PTI