Gold and silver prices soared in the Indian market due to rupee depreciation, robust demand, and global cues. Gold hit ₹79,700 per 10 grams
Gold and silver prices in the national capital surged on Tuesday, marking significant gains amid robust domestic demand, a weakening rupee, and bullish trends in the global market. According to the All India Sarafa Association, gold prices climbed ₹700 to reach ₹79,700 per 10 grams, compared to Monday’s closing price of ₹79,000. Silver, on the other hand, rose sharply by ₹1,300, hitting a three-week high of ₹92,000 per kg, up from ₹90,700 the previous day.
The rise in bullion prices was supported by a depreciation in the rupee, which settled 5 paise lower at 85.73 against the US dollar on Tuesday. The weakening currency, combined with higher crude oil prices and outflows of foreign funds, added pressure to the local economy.
Fresh buying by jewellers and retailers further fueled the rally in gold and silver prices, while traders noted that demand for precious metals remains robust in the domestic market.
In the Multi Commodity Exchange (MCX) futures trade, gold contracts for February delivery appreciated ₹122, or 0.16%, to ₹77,280 per 10 grams. Silver contracts for March delivery followed suit, rallying ₹551, or 0.61%, to ₹91,105 per kg.
On the international front, Comex gold futures rose 0.28% to $2,654.90 per ounce, while Comex silver futures gained 0.73% to trade at $30.81 per ounce during Asian trading hours.
Saumil Gandhi, Senior Analyst at HDFC Securities, stated, “Gold is hovering around the $2,635 level amid mixed cues. Uncertainty surrounding US policy decisions has attracted haven flows, offering support to precious metals.”
Traders are keeping a close eye on critical US economic data, including the ISM Services PMI, JOLTS job openings, and non-farm employment reports. These indicators are expected to provide insights into the Federal Reserve’s monetary policy direction.
Renisha Chainani, Head of Research at Augmont, noted that the price of gold heavily relies on dovish monetary policy. She stated, “If the US jobs report falls short of forecasts, it may support the Federal Reserve’s stance on pausing its interest rate-cutting cycle, benefiting gold prices. However, less aggressive rate cuts might adversely impact the metal.”
With gold prices at ₹79,700 per 10 grams and silver at ₹92,000 per kg, the bullion market is reflecting global economic uncertainties and domestic demand patterns. As investors monitor Federal Reserve cues and critical US data, the outlook for precious metals remains dynamic.
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