Silver price also increased from Rs 1,300 to Rs 92,200 per kilogram. On Thursday, prices of the white metal fell by Rs 4,900 to Rs 90,900 per kg.
The price of 99.5% pure gold rose by Rs 700 to reach Rs 79,000 as against the previous close of Rs 78,300 per 10 grams on Thursday.
Traders said the sentiment has turned bullish due to positive trends abroad and increase in domestic demand, which mainly pushed gold prices higher.
Meanwhile, in futures trading on the Multi Commodity Exchange (MCX), gold contracts for December delivery rose by Rs 602, or 0.79 per cent, to trade at Rs 76,326 per 10 grams.
“Gold traded positively on the MCX, supported by safe-haven demand amid ongoing geopolitical concerns,” said Jateen Trivedi, vp of research and analytics for commodities and currencies at LKP (*10*). Silver contracts for December delivery rose by 1,049 rupees or 1.19 percent to 89,051 rupees per kilogram on the exchange. Globally, Comex gold futures rose $20.60 per ounce, or 0.77%, to $2,685.40 per ounce.
“Gold saw modest gains in trading on Friday, buoyed by safe-haven buying and the likelihood of the U.S. Federal Reserve continuing to cut interest rates at its December meeting despite slightly higher inflation data released earlier this week,” Saumil Gandhi, senior research analyst at commodities at HDFC (*10*), he said.
Silver prices also rose by 1.94% at USD 31.15 per ounce throughout the Asian market hours.
“Spot gold extended its recovery for the fourth consecutive day on Friday as geopolitical concerns continue to support the metal,” said Praveen Singh, associate vp, core currencies and commodities, Mirae Asset Sharekhan.
After Thursday’s missile and drone attacks on Ukraine’s energy infrastructure, President Vladimir Putin warned that Russia could goal Ukraine with nuclear-capable ballistic missiles, which sent an influx of the valuable metal into the haven, Singh said.
Speculation about potential latest U.S. tariffs has added to gold’s bullish momentum, according to Abans Holdings CEO Chintan Mehta. Amid growing uncertainty, the outlook for gold stays good.
Markets are closely monitoring the escalation of tensions between Ukraine and Russia and are eagerly awaiting Monday’s PMI data for American manufacturing. Key speeches by Fed officials, including Fed Chairman Jerome Powell, are also within the highlight as markets await a December rate of interest decision, Mehta said.
