Gold price today stood at Rs 78,460 as of 6:50 a.m., according to the India Bullion Association. The price rose by Rs 300 for the third consecutive session, reaching Rs 80,300 per 10 grams in the national capital on Thursday. They where pushed higher by strong global factors, according to the All-India Sarafa Association.
The rate at the national capital stood at Rs 78,180, while the price in Kolkata was higher at Rs 78,210. In Bangalore, the rates crossed Rs 78,380, according to the India Bullion Association. While Chennai continues to see the highest rates in the nation with prices at Rs 78,540.
Traders noted that the increase was influenced by news that the People’s Bank of China had raised its reserves for the second consecutive month. In the previous session, gold of 99.9% purity had closed at Rs 80,000 per 10 grams. On Thursday, gold of 99.5% purity also gained Rs 300, reaching Rs 79,900 per 10 grams.
The rise in gold prices was attributed to a risk-off sentiment in the equity market and weak economic data from China, which led investors toward gold as a safe-haven asset.
“China’s consumer inflation fell to zero, decelerating for a fourth straight month, raising concerns about growth in the world’s second-largest economy,” said Saumil Gandhi, senior analyst of commodities at HDFC Securities.
The data has weakened the Chinese government’s efforts to tackle deflation and stimulate demand through its stimulus measures, Gandhi noted.
