Gold Rises To ₹1.54 Lakh Per 10 Grams

Gold prices in the national capital rose by Rs 200 to Rs 1.54 lakh per 10 grams on Friday, marking the fourth consecutive day of increase. The rise in gold prices is attributed to a sharp rally in overseas markets, where a weaker US dollar and softer crude oil prices lifted bullion demand.

According to local traders, the yellow metal of 99.9 per cent purity increased by Rs 200 to Rs 1,54,000 per 10 grams, inclusive of all taxes, from Thursday's closing level of Rs 1,53,800 per 10 grams. However, silver remained unchanged at Rs 2,34,800 per kilogram, inclusive of all taxes, after witnessing a sharp rise in the previous session.

Gaurav Garg, Head of Research at Lemonn Markets Desk, said that gold extended its gains for the fourth consecutive session, heading for its strongest weekly performance since January. He attributed the rally to a weak dollar, easing inflation expectations, and continued demand for bullion ahead of the US non-farm payrolls report.

In the international markets, spot gold rose by USD 84.74, or 2 per cent, to USD 4,325.43 per ounce, while silver gained strength by advancing more than 4 per cent to USD 64.17 per ounce. Kaynat Chainwala, AVP Commodity Research at Kotak Securities, said that both metals were on course for their strongest weekly performance since January, supported by softer crude oil prices and a weak US dollar.

The rally in gold prices is also supported by renewed institutional demand, with global gold exchange-traded funds recording inflows of 23.5 tonnes in July after two consecutive months of outflows. Market participants are awaiting the US non-farm payrolls report, which is expected to provide fresh cues on the Federal Reserve's interest rate outlook.

The rise in gold prices is significant, as it indicates a strong demand for the precious metal. The weak US dollar and softer crude oil prices have lifted bullion demand, making gold a more attractive investment option. The US non-farm payrolls report is expected to provide further cues on the Federal Reserve's interest rate outlook, which could impact gold prices in the coming days.

In the context of the Indian market, the rise in gold prices is likely to impact the demand for gold in the country. India is one of the largest consumers of gold, and a rise in prices could lead to a decrease in demand. However, the demand for gold in India is also driven by cultural and traditional factors, which could continue to support the demand for gold despite the rise in prices.

Overall, the rise in gold prices is a significant development, and market participants will be closely watching the US non-farm payrolls report for further cues on the Federal Reserve's interest rate outlook. The rally in gold prices is expected to continue, supported by a weak US dollar and softer crude oil prices, making gold a more attractive investment option.

The significance of the rise in gold prices cannot be overstated, as it has a direct impact on the Indian economy. The demand for gold in India is a significant contributor to the country's trade deficit, and a rise in prices could lead to an increase in the trade deficit. However, the rise in gold prices also indicates a strong demand for the precious metal, which could lead to an increase in investment in the gold sector.

In conclusion, the rise in gold prices is a significant development, and market participants will be closely watching the US non-farm payrolls report for further cues on the Federal Reserve's interest rate outlook. The rally in gold prices is expected to continue, supported by a weak US dollar and softer crude oil prices, making gold a more attractive investment option.