Silver prices in the previous close were Rs. 82,500 per kg to Rs. 1,000 rose to Rs. 83,500 had been reached.
Meanwhile, gold of 99.5 percent purity also fetched Rs. 200 increased to Rs. 72,000 per 10 grams was reached. In earlier trade, it was on Saturday at Rs. 71,800 per 10 gm.
Traders said gold prices rose due to increased demand from domestic jewelers and strong trend in overseas markets.
On the global front, Comex gold was trading up USD 8.40 per ounce to $2,481.80 an ounce.
“Gold prices rose on Monday as geopolitical concerns over the Middle East crisis boosted safe-haven demand for the precious metal,” said Saumil Gandhi, senior commodity analyst at HDFC Securities.
Traders also increased their bets on aggressive interest rate cuts by the US Federal Reserve (Fed) this year after recent weak macro data provided further support to the yellow metal, Gandhi added.
According to Manav Modi, senior analyst, commodity research at Motilal Oswal Financial Services, gold prices rose sharply in the previous session, bolstered by a fall in US Treasury yields, as investors were confident the Fed would cut interest rates. September this year.
Silver is at $28.01 per ounce in international markets.
Traders turned their attention to US consumer price index data, due next week, for insight into the Fed’s likely monetary policy path.
According to Jatin Trivedi, VP Research Analyst – Commodity & Currencies, LKP Securities, gold prices are largely driven by rising tensions in the Middle East, particularly concerns over a possible attack on Israel by Iran.
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