Gold prices rose Rs 400 to Rs 98,020 per 10 grams in the national capital on Monday, driven by renewed buying from stockists amid a weak rupee and firm global trends, according to the All India Sarafa Association. The precious metal of 99.9 per cent purity had closed at Rs 97,620 per 10 grams on Friday.
Similarly, gold of 99.5 per cent purity advanced Rs 300 to Rs 97,800 per 10 grams, including taxes, from the previous close of Rs 97,500 per 10 grams. Silver also witnessed a rise, climbing Rs 500 to Rs 1,10,000 per kilogram, compared to its last settlement of Rs 1,09,500 per kg.
Market analysts attributed the surge in bullion prices to currency movement, global economic signals, and buying momentum in the domestic market.
“Gold prices traded very strong, driven by a weak rupee and disappointing US macroeconomic data on Friday. The data supported gold prices in the international market, which climbed to USD 3,355 per ounce,” said JateenTrivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
The Indian currency’s weakness against the US dollar, coupled with tariff-related concerns, fueled domestic demand for the yellow metal. Trivedi added that the coming week’s focus would be on the Reserve Bank of India’s monetary policy meeting and US manufacturing data, which could provide fresh cues on the short-term trajectory of bullion prices.
In global markets, spot gold was seen trading nearly flat at USD 3,363.83 per ounce in New York. Analysts noted that while global prices showed stability, the domestic market benefited from rupee depreciation.
“Spot gold is trading at USD 3,355 per ounce as risk assets are bid on rate cut hopes; however, sharp decline in the Indian rupee on tariff concerns supports the domestic gold prices,” said Praveen Singh, Associate Vice President, Fundamental Currencies and Commodities at Mirae Asset Share Khan.
Meanwhile, silver also maintained a positive tone internationally, with spot prices rising 0.43 per cent to USD 37.20 per ounce. The white metal’s rally in the domestic market aligned with this overseas uptrend, supported by robust industrial and investment demand.
Experts believe that gold could remain volatile in the near term, with investors closely tracking both domestic and international developments. Any updates on US interest rate expectations, movement in the rupee, and global economic data will play a crucial role in shaping market direction.
Bullion prices have been highly sensitive to global cues this year, with rising geopolitical tensions, trade policies, and currency movements driving fluctuations. Investors have increasingly turned to gold and silver as safe-haven assets, particularly amid uncertainties in the global economic outlook.
As India approaches the festive and wedding season, analysts expect demand to remain firm, potentially adding further support to gold and silver prices in the weeks ahead.
