Gold Jumps ₹1,200 to ₹1,63,500 in Mumbai

Gold prices in Mumbai jumped ₹1,200 to ₹1,63,500 per 10 grams on Friday, extending gains for the second straight session. The metal was last near this level on May 19, when it traded at ₹1,63,600 per 10 grams.

The surge in gold prices was driven by a weaker US dollar and increased demand for precious metals in overseas markets. According to traders, gold of 99.9 percent purity jumped ₹1,200 to ₹1,63,500 per 10 grams, including taxes.

Silver prices also surged, with the white metal jumping ₹5,000 to ₹2,50,000 per kilogram, its highest level in 15 weeks. The metal had settled at ₹2,45,000 on Thursday and has gained ₹15,000 over the last two sessions.

In international markets, spot gold rose $81.58, or 2 percent, to $4,600.91 per ounce, touching its highest level since May 18. Spot silver climbed nearly 3 percent to $69.87 per ounce.

Experts attributed the surge in bullion prices to a weaker dollar and falling longer-term US Treasury bond yields. Investment demand and movements in currency and bond markets also supported gold and silver prices.

The US Treasury's decision to expand its bond-buying programme and double long-term debt buybacks to control borrowing costs also contributed to the surge in gold prices. The move pushed the dollar and bond yields lower, giving support to bullion.

A decline in global oil prices also supported precious metals, while geopolitical worries increased after the Trump administration announced its toughest economic sanctions against Iran.

Investors are now waiting for US S&P purchasing managers’ index data for signals about the Federal Reserve’s interest-rate policy.

The surge in gold and silver prices is expected to continue, driven by global cues and investment demand. Mumbai residents can expect to pay more for gold and silver in the coming days, as prices continue to rise.

The increase in gold and silver prices is significant for Mumbai, as the city is a major hub for gold and silver trading. The surge in prices is expected to impact the local market, with traders and investors closely watching the prices of precious metals.

In conclusion, the surge in gold and silver prices in Mumbai is driven by global cues, investment demand, and a weaker US dollar. As the prices of precious metals continue to rise, Mumbai residents can expect to pay more for gold and silver in the coming days.