New Delhi

Goldstaged a sharp comeback in the national capital on Thursday, rising by Rs 4,300 to a three-month high of Rs 1.62 lakh per 10 grams, and silver surged by Rs 10,000 as investors turned to precious metals amid a weak US dollar. The yellow metal of 99.9 per cent purity appreciated by Rs 4,300 to Rs 1,62,300 per 10 grams (inclusive of all taxes), according to local traders. It had closed at Rs 1,58,000 per 10 grams on Wednesday.

The precious metal was last seen at comparable levels on May 26, when it was quoted at Rs 1,62,400 per 10 grams. Silver mirrored the rally, soaring to a seven-week high of Rs 2,45,000 per kilogram (inclusive of all taxes) from Rs 2,35,000 per kg. The white metal had traded near these levels on July 3, when it was quoted at Rs 2,45,000 per kg. "Gold hovered near its highest level in more than two months on Thursday, supported by a sharp decline in the US dollar and Treasury yields," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said. The dollar index slid to a three-month low, while lower Treasury bond yields improved the appeal of assets such as gold, he added. The rally in spot bullion prices came despite a retreat in the overseas markets. Gold dipped USD 66.31, or 1.47 per cent, to USD 4,456.72 per ounce, and silver dropped nearly 2 per cent to USD 65.82 per ounce. Spot gold was trading lower at USD 4,450 per ounce as crude oil prices surged over 2 per cent after the US President Donald Trump announced new economic sanctions on Iran, Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.