Gold rises Rs 100 to Rs 75 650 per 10 grams amid firm global cues

     New Delhi, Jul 22 (PTI) Gold prices rose by Rs 100 to Rs 75,650 per 10 grams in the national capital on Monday on increased buying by jewellers amid a firm global trend.
     However, silver prices plunged by Rs 600 to Rs 91,000 per kg. In the previous session, it had settled at Rs 91,600 per kg, as per the All India Sarafa Association.
     On Saturday, the precious metal rates had closed at Rs 75,550 per 10 grams.
     Meanwhile, gold of 99.5 per cent purity also rose by Rs 100 to Rs 75,300 per 10 grams. It had ended at Rs 75,200 per 10 grams in the previous session.
     Traders attributed the rise in gold prices to fresh demand by local jewellers and a firm trend in the international markets.
     The white metal has declined Rs 3,400 per kg in the past four sessions since July 18 when it had fallen by Rs 400 to end at Rs 94,000 per kg.
     Globally, Comex gold is trading higher at USD 2,453.60 per ounce, up by USD 6.80 per ounce from the previous close.
     "After a sharp pullback from all-time highs last week, Comex gold edged higher on Monday as US election uncertainty weighed on US dollar and treasury yields," Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said.
     President Joe Biden's decision to end his re-election campaign and endorse Vice President Kamala Harris prompted speculation on whether it would benefit or hinder chances of former President Donald Trump returning to the White House.
     As a result, the bulls of the US dollar remained cautious and the commodity prices gained some traction.
     Traders are now eagerly anticipating the release of several key economic indicators ahead of the Federal Open Market Committee (FOMC) policy decision next week, Chainwala added.
     However, silver was down at USD 29.21 per ounce in New York.
     "Gold is taking support around USD 2,400 on Monday at the fresh start of the week, with a focus on the Union Budget on Tuesday.
     "The commodity market expects measures to encourage the export of Indian jewellery and keep gold prices lower, possibly by reducing import tax on raw gold or export tax on finished gold goods," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
     Additionally, lowering the Commodity Transaction Tax (CTT) on derivatives is needed to boost participation, Trivedi added.
     According to commodity market experts, traders also worried about slowing Chinese economic growth, geopolitical risks from the Russia-Ukraine war and the ongoing conflicts in the Middle East will benefit the safe-haven asset.
     Further, traders are awaiting the upcoming release of the US Personal Consumption Expenditures (PCE) price index data on Friday for more cues about the US Federal Reserve's monetary policy path, which will provide directions for the bullion prices in the near future, they said.
     "Traders also believe that the short-term trend for the bullion prices will remain volatile amid mixed global cues," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)