Gold rallies Rs 527, silver zooms Rs 1,043

New Delhi, May 26 (PTI): Gold rallied Rs 527 to Rs 48,589 per 10 grams in the national capital on Wednesday reflecting gains in global precious metal prices, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 48,062 per 10 grams.
Silver also witnessed heavy demand as it gained Rs 1,043 to Rs 71,775 per kg, from Rs 70,732 per kg in the previous trade.
In the international market, gold was trading with gains at USD 1,908 per ounce and silver was flat at USD 28.07 per ounce.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, “The dollar index fell to the lowest level since January, while the US 10-year treasury yields dropped to 1.56 per cent, boosting buying in precious metals.”
Motilal Oswal Financial Services Vice-President (Commodities Research) Navneet Damani said, “Gold prices continue to trade higher, as it breached the physiological level of USD 1,900 hovering around 4-1/2-month high amid a drop in US Treasury yields and a weaker dollar.”
Gold prices on Wednesday rose Rs 229 to Rs 49,096 per 10 gram in the futures trade as speculators created fresh positions on a firm spot demand.
On the Multi Commodity Exchange, gold contracts for the June delivery traded higher by Rs 229, or 0.47 per cent, at Rs 49,096 per 10 gram in a business turnover of 5,531 lots.
Fresh positions built up by participants led to the rise in gold prices, analysts said.
Gold prices traded 0.55 per cent higher at USD 1,911 per ounce in New York.
Gold prices rose helped by a weaker dollar and growing inflation concerns after Federal Reserve officials maintained a dovish stance over rates. Spot gold was up 0.3% to $1,904.50 per ounce, its highest level since Jan 8. US gold futures gained 0.4% to $1,905.40 per ounce.