Gold jumps Rs 250 to Rs 89,350 per 10 gm amid rupee depreciation concerns

Gold prices jumped by Rs 250 to Rs 89,350 per 10 grams on Tuesday extending gains for the second day amid depreciation in rupee, according to the All India Sarafa Association.

The gold of 99.5 per cent purity rose by Rs 250 to Rs 88,950 per 10 grams from the previous close of Rs 88,700 per 10 grams. 

On February 20, gold of 99.9 per cent and 99.5 per cent purity hit all-time highs of Rs 89,450 and Rs 89,050 per 10 grams, respectively.

However, silver prices slipped below the Rs 1 lakh mark, falling by Rs 500 to Rs 99,500 per kg.

"Silver fell due to weakness in the industrial metals and rebound in the dollar index. Global equity markets are also struggling due to Trump's tariff fears and pressure on industrial metals but reversal in the US Treasury yields could support silver prices at lower levels," Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said.

On Tuesday, the rupee fell sharply by 51 paise to settle at 87.23 (provisional) against the US dollar due to month-end dollar demand by importers amid uncertainty over US trade tariffs.

In futures trade on the Multi Commodity Exchange (MCX), gold contracts for April delivery appreciated by Rs 275 to Rs 86,459 per 10 grams.

"Gold traded positively in MCX as rupee weakness below 87.10 provided support to domestic prices. Meanwhile, Comex gold remained range-bound between USD 2,930 and 2,955, continuing its consolidation phase over the past few sessions," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

On the other hand, silver futures for March delivery increased by Rs 241 to Rs 95,330 per kg on the commodities bourse.

According to HDFC Securities' Senior Analyst of Commodities Saumil Gandhi, traders will be awaiting the macro data, including the CB Consumer Confidence Index and the Richmond manufacturing index to be release later on Tuesday, along with some of the US Federal Reserve members speech which will provide trajectory for the bullion prices.