Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said gold witnessed a sharp recovery after geopolitical worries began to cool, leading to a reversal in several macroeconomic factors that had weighed on precious metals in recent sessions.
Silver too maintained its upward momentum for the third consecutive session. Prices of the white metal advanced by Rs 3,500, or 1.4 per cent, to Rs 2,54,500 per kg, inclusive of all taxes, after ending the previous session at Rs 2,51,000 per kg, according to the association.
Gandhi noted that expectations of a diplomatic resolution between Washington and Tehran led to a notable decline in crude oil prices and the US dollar, which in turn reduced inflation fears and strengthened the appeal of precious metals.