Gold prices rise Rs 410, silver jumps Rs 1,700; oil dips below $82

Gold price climbed Rs 410 to Rs 61,210 per 10 grams in the national capital on Wednesday amid strong cues in the international markets, according to HDFC Securities.

The precious metal had closed at Rs 60,800 per 10 grams in the previous trade.

Silver also jumped Rs 1,700 to Rs 75,000 per kilogram.

“Gold prices advanced on Wednesday, with spot gold prices in the Delhi markets trading at Rs 61,210/10 gram, up Rs 410, following a bullish trend in the overseas markets,” Saumil Gandhi, senior analyst of commodities at HDFC Securities.

In the global markets, both gold and silver were trading higher at $1,970 per ounce and $23.27 per ounce, respectively.

Gold gains after soft US inflation data bolstered the view that the Federal Reserve’s aggressive monetary tightening cycle has ended and traders have raised the bets for a rate cut in the next year,” Gandhi said.

Oil dips below $82 on record output in US 

Oil prices dipped on Wednesday due to expectations of an increase in US crude stocks amid record high output in the world’s biggest producer and despite positive demand signs from top consumer China. Brent futures were down 69 cents to $81.78 a barrel at 1346 GMT. 

In signs of healthy US crude supply, American Petroleum Institute figures on Tuesday showed rising crude oil and gasoline inventories last week, according to market sources. The US Energy Information Administration (EIA) will release on Wednesday its first oil inventory report in two weeks, after a delay last week due to a systems upgrade.

In good news for demand, China's economic activity perked up in October as industrial output increased at a faster pace and retail sales growth beat expectations, an encouraging sign for the world's second-largest economy.

The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries.

"With China being a scapegoat for much of the world's lack of industrial demand, this glimmer of light ought to aid oil's progress but the reluctance is so far winning out," John Evans of oil broker PVM said in a note.

Downward pressure on oil prices may come from the supply side, with the United States "likely at peak production for crude," while the delayed release of its oil data makes the investment situation more opaque, Evans said.

 

Ask Automotive gains 10% on debut

Shares of ASK Automotive rose 10 per cent during their stock market debut on Wednesday. The stock hit a high of Rs 317 and a low of Rs 303 on NSE, where shares worth Rs 670 crore changed hands. 

At the last close, ASK was valued at Rs 6,115 crore. Its initial public offering (IPO) had seen 50 times more demand than shares on offer. 

ASK is the largest manufacturer of brake-shoe and advanced braking systems for two-wheelers in India with a market share of about 50 per cent during 2022-23.

In its IPO, promoters Kuldip Rathee and Vijay Rathee sold shares worth Rs 834 crore. BS REPORTER