Gold rises by Rs 300 to Rs 80,300 per 10 gms on global cues

Gold price climbed Rs 300 for a third consecutive session to Rs 80,300 per 10 grams in the national capital on Thursday amid strong global cues, according to the All India Sarafa Association.

Traders said the precious metal surged, following news that People's Bank of China (PBoC) increased its reserves for the second consecutive month.

In the previous session, the yellow metal of 99.9 per cent purity ended at Rs 80,000 per 10 grams.

The price of gold of 99.5 per cent purity rose Rs 300 to Rs 79,900 per 10 grams on Thursday.

Silver rose by Rs 500 to Rs 93,000 per kg from the previous close of Rs 92,500 per kg on Wednesday.

Additionally, gold contracts for February delivery climbed Rs 247 or 0.32 per cent to Rs 77,994 per 10 grams in futures trade on the MCX.

In futures trade, silver for March delivery rallied Rs 593 or 0.65 per cent to Rs 91,531 per kg on the Multi Commodity Exchange (MCX).

Globally, Comex gold futures rose USD 10 per ounce or 0.37 per cent to USD 2,682.40 per ounce.

"Gold rose on Thursday amid risk-off sentiment in the equity market and weak macro data from China, drawing flow towards the traditional safe haven asset gold.

"China's consumer inflation fell to zero, decelerating for a fourth straight month, raising concerns about growth in the world's second-largest economy," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

The data has undermined the Chinese government's attempts to combat deflation and boost demand through stimulus measures, Gandhi added.

According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, Comex gold edged up to USD 2,680 per ounce, maintaining a two-day advance as traders awaited the official US jobs report due on Friday for further clues on the Federal Reserve's monetary policy outlook.

Comex silver futures increased 0.83 per cent in the Asian market hours at USD 30.95 per ounce.

"The US Fed's Federal Open Market Committee's (FOMC) meeting minutes on Wednesday suggested a possible delay in the rate-easing cycle, however gold is trading strongly".

"Furthermore, investors are turning to precious metals for stability as a result of increased market volatility brought on by elevated geopolitical tensions," Renisha Chainani, Head of Research at Augmont, said.