Gold rebounds above Rs 1.6 lakh as crude eases; silver extends losses

New Delhi: Gold prices bounced back above the Rs 1.6 lakh per-10-gram mark in the national capital on Thursday, continuing a volatile trading pattern driven by easing crude oil rates and lingering geopolitical uncertainty.

According to the All India Sarafa Association, 99.9% purity gold rose Rs 700 to Rs 1,60,300 per 10 grams (inclusive of all taxes). The gain partially reversed Wednesday’s Rs 1,850 fall and followed Tuesday’s Rs 1,050 rise, underscoring the seesaw movements that have characterised precious metals this week.

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The rebound in gold came as crude oil eased after a conditional ceasefire between Israel and Lebanon, although the broader geopolitical backdrop remained uncertain. Israeli Prime Minister Benjamin Netanyahu said Iran has yet to agree to remove enriched uranium, while negotiations involving Tehran remained unresolved.

Silver moved counter to gold, extending losses for a second straight session. The metal fell Rs 3,800, or 1.14%, to Rs 2,65,700 per kilogram on Thursday after a Rs 1,500 decline in the previous session, the association reported.

Market analysts attributed the range-bound action in gold to mixed drivers. "Gold prices remained range-bound after finding mild support from a decline in crude oil prices," Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, said.

In international markets, spot gold gained nearly 1% to quote at USD 4,471.79 per ounce, while silver rose 1.14% to USD 73.56 per ounce.

"Gold prices recovered after crude oil rates eased, though expectations of tighter US monetary policy and lingering uncertainty surrounding US-Iran negotiations could limit further gains," Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.

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Investors awaited further cues from the Reserve Bank of India’s policy decision and the US non-farm payrolls and unemployment data due on Friday, which market participants expect could influence interest-rate expectations and the next moves in precious metals, Trivedi added.

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