Market update: Gold reaches Rs 79,400 and Silver rises to Rs 1,300

New Delhi: Gold prices rose by Rs 700 to Rs 79,400 per 10 grams in the national capital on Friday due to fresh buying by local jewellers and a firm overseas trend, according to the All India Sarafa Association.The precious metal of 99.9 per cent purity closed at Rs 78,700 per 10 grams on Thursday.Silver also climbed Rs 1,300 to Rs 92,200 per kg. On Thursday, the white metal prices crashed by Rs 4,900 to Rs 90,900 per kg.Price of gold of 99.5 per cent purity advanced Rs 700 to hit Rs 79,000-mark against the previous close of Rs 78,300 per 10 grams on Thursday.Traders said sentiment turned bullish due to positive trend overseas and rise in domestic demand, which mainly pushed gold prices higher.Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery climbed Rs 602 or 0.79 per cent to trade at Rs 76,326 per 10 grams.“Gold traded positively in MCX, supported by safe-haven demand amid ongoing geopolitical concerns,” Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.Silver contracts for December delivery advanced Rs 1,049 or 1.19 per cent to Rs 89,051 per kg on the bourse.Globally, Comex gold futures rose USD 20.60 per ounce or 0.77 per cent to USD 2,685.40 per ounce.“Gold advanced in thin trading volume on Friday, buoyed by safe-haven buying and the likelihood of the US Federal Reserve continuing interest rate cuts at its December meeting despite slightly higher inflation data published earlier this week,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.Silver also traded 1.94 per cent higher at USD 31.15 per ounce in the Asian market hours.“Spot gold has extended its recovery to the fourth straight day on Friday as geopolitical worries continue to support the metal,” Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Mirae Asset Sharekhan, said.After targeting Ukraine’s energy infrastructure with missile and drone attacks on Thursday, President Vladimir Putin has warned that Russia can target Ukraine with nuclear-capable ballistic missiles, which drove haven flows towards the precious metal, Singh stated.According to Abans Holdings’ Chief Executive Officer Chintan Mehta, speculations over potential new US tariffs have added to gold’s bullish momentum. Amid rising uncertainties, the outlook for gold remains strong.Markets are closely monitoring escalating Ukraine-Russia tensions and looking ahead to Monday’s US manufacturing PMI data. Key addresses from Fed officials, including Fed Chair Jerome Powell, are also in focus as markets anticipate the December rate decision, Mehta said.