Gold prices may trade higher in coming days because of weaker dollar and speculations of US Fed rate cut, HDFC's Tapan Patel.
New Delhi: Gold and silver prices continued their rally on Friday with the precious metal rising by Rs 280 to Rs 35,950 per 10 gram and the white metal crossing Rs 42,000 mark on persistent buying from jewellers, according to the All India Sarafa Association.
Silver prices rose for the fourth consecutive day, surging Rs 935 to Rs 42,035 per kg on increased offtake by industrial units and coin makers. Silver has risen by Rs 1,925 in the previous three days.
"Bullion prices traded higher with international spot gold prices touching USD 1,452.95 on Friday and currently trading near USD 1,440. Silver prices gained momentum on expectations of revival in industrial demand on monetary easing from major central banks," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
The comments by US Fed officials hinting rate cut by month end and heightened geopolitical tensions in the Middle East after US Navy shot down Iranian drone near Strait of Hormuz also supported firm trade in gold prices, he said.
Gold prices may trade higher in the coming days because of weaker dollar and speculations of US Fed rate cut, Patel said.
Rate cuts by central banks of South Korea and Indonesia have also raised concerns over emerging market recovery, he added.
Globally, gold was trading lower at USD 1,437.60 an ounce in New York, while silver was up at USD 16.45 per ounce.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity gained Rs 280 to Rs 35,950 and Rs 35,780 per 10 gram, respectively.
Sovereign gold also advanced by Rs 100 to Rs 27,500 per eight gram.
Silver ready jumped Rs 935 to Rs 42,035 per kg, while weekly-based delivery surged Rs 857 to Rs 41,263 per kg.
Silver coins were in good demand and traded higher by Rs 3,000 at Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces, respectively.