Gold price on Thursday surged by Rs 600 to Rs 1,00,620 per 10 grams in the national capital.
This sharp rise came as stockists engaged in fresh buying, coupled with renewed safe-haven demand.
In its previous session, the yellow metal had settled at Rs 1,00,020 per 10 grams.
The precious metal of 99.5 per cent purity also followed the trend, jumping Rs 500 to close at Rs 1,00,200 per 10 grams, inclusive of taxes. In the last session, it had closed at Rs 99,700 per 10 grams.
Market experts attributed this gain to bargain buying after a recent drop in prices.
“Gold prices rose on Thursday, driven by safe haven demand and bargain buying after the price fell to a three-week low in the previous session. The renewed demand for safe haven was spurred by President Donald Trump’s call for the resignation of a Federal Reserve governor, which raised concerns about the central bank’s independence,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
The political development in the US dented investor confidence in the stability of the Federal Reserve. As a result, the US dollar retreated from its recent high, giving further support to bullion prices. “Following this comment, the US Dollar retreated from its recent high, further supporting gold prices,” Gandhi added.
Alongside gold, silver prices too staged an impressive surge. The metal shot up by ₹1,500 to trade at ₹1,14,000 per kilogram on Thursday, compared with the previous session’s closing level of ₹1,12,500 per kilogram. The steep jump highlighted the strengthening demand in the bullion market.
However, on the international stage, the trend appeared slightly different. Spot gold was trading 0.28 per cent lower at USD 3,339.04 per ounce in New York. Despite this dip, analysts suggested that the yellow metal was holding firm near the USD 3,340 level as investors awaited crucial US macroeconomic data.
“Gold is holding steady near USD 3,340 per ounce as investors await key US macroeconomic data, including jobless claims, PMIs, and existing home sales. However, the main focus remains on Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium as investors are watching closely for signs of a monetary policy shift, particularly after last year’s remarks signalled the start of a rate-cutting cycle,” said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.
The upcoming symposium is being closely tracked, as any hint from Powell on monetary easing could shape the near-term trajectory of precious metals. Market participants also weighed the minutes from the Federal Reserve’s July meeting, which indicated that officials remain cautious about inflation and the labour market, suggesting that it may still be too early for a rate cut.
Meanwhile, silver showed weakness globally, with spot silver slipping 0.32 per cent to USD 37.78 per ounce.
The contrasting trends between domestic and international markets highlight the influence of local demand, currency movement, and geopolitical factors on bullion prices. While investors await clarity from US economic data and the Fed’s outlook, precious metals are likely to stay in the spotlight for the coming weeks.
