Gold of 99.5 per cent purity rose by Rs 235 to Rs 90,235 per 10 grams against the previous close of Rs 90,000 per 10 grams.
Traders said fresh buying by retailers after recent losses led to the recovery in gold prices. Firm global trends also influenced the sentiment, they said.
Silver prices also recovered by Rs 1,500 to Rs 1,01,500 per kg. The white metal had settled at Rs 1,00,000 per kg on Tuesday.
Meanwhile, spot gold traded 0.16 per cent higher at USD 3,024.96 per ounce in the global markets. Also, Comex gold futures for April delivery in the Asian market hours quoted higher at USD 3,059.10 per ounce.
“Gold edged slightly higher on Wednesday, buoyed by safe haven demand and strong inflow from gold-backed Exchange Traded Funds (ETFs). “The uncertainty surrounding US President Donald Trump’s reciprocal tariff decision on April 2 appears to be a crucial factor supporting safe-haven metal gold,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said. Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said market participants are awaiting key macroeconomic data, including US GDP and Core Personal Consumption Expenditures (PCE) Price Index, scheduled for release later this week.
“The broader trend will also be influenced by developments in the Russia-Ukraine situation, which continues to drive safe-haven demand,” Trivedi added.
According to Kotak Securities’ AVP-Commodity Research, Kaynat Chainwala, investors will also closely monitor the Federal Open Market Committee (FOMC) members for further guidance on interest rate direction and future course of action for bullion prices.
