New Delhi, May 13 — Gold prices bounced back sharply on Tuesday, rising by Rs 950 to reach Rs 97,500 per 10 grams in the national capital, driven by positive trends in the global markets. According to the All India Sarafa Association, gold of 99.5 percent purity also saw a significant rise of Rs 1,000, bringing its price to Rs 97,100 per 10 grams.
This recovery comes a day after a steep decline on Monday, when gold had dropped by Rs 3,400 to settle at Rs 96,550 for 99.9 percent purity and Rs 96,100 for 99.5 percent purity per 10 grams.
However, silver prices failed to mirror gold’s performance, falling by Rs 250 to Rs 99,450 per kilogram from the previous close of Rs 99,700 per kilogram.
As per agency report, the rebound in gold was attributed to renewed safe-haven demand following recent geopolitical tensions and global market dynamics. Chintan Mehta, CEO of Abans Financial Services, noted that after a sharp decline triggered by reduced safe-haven buying due to the temporary truce in the US-China trade dispute, gold prices have recovered swiftly.
In the latest development, the United States has agreed to reduce tariffs on Chinese imports from 145 percent to 30 percent, while China has reciprocated by lowering duties on American goods from 125 percent to 10 percent. This move has brought some calm to the global markets and spurred gains in equity indices.
Globally, spot gold was quoted at $3,253.38 per ounce. Kainaat Chainwala, AVP (Commodities Research) at Kotak Securities, stated that gold had slumped over three percent on Monday to mark its weakest close in two weeks. However, the price regained some strength on Tuesday, climbing above $3,240 per ounce amid renewed concerns over geopolitical risks.
Reports of Israeli airstrikes targeting Houthi rebel bases in Yemen have also rekindled demand for gold as a traditional safe-haven asset.
