Gold Hits ₹1.57 Lakh Per 10 Grams, 2-Month High

Gold prices in the national capital rose to a two-month high of ₹1.57 lakh per 10 grams on Tuesday, marking the sixth consecutive session of gains. The increase of ₹1,200 from Monday's closing level was driven by stronger investment demand, despite firm oil prices.

The All India Sarafa Association reported that the yellow metal of 99.9 per cent purity jumped to ₹1,57,200 per 10 grams, inclusive of all taxes. This level was last seen on June 12, when gold was quoted at ₹1,56,900 per 10 grams.

Over the past six trading sessions, gold has added ₹9,800, or 6.65 per cent, rising from ₹1,47,400 per 10 grams recorded on August 3. Silver has also benefited from the rally, soaring by ₹2,000 to ₹2,42,000 per kilogram, its highest level in more than two months.

Gaurav Garg, Head of Research at Lemonn Markets Desk, attributed the gold price surge to increased safe-haven buying ahead of the US inflation data. He noted that silver's rise was supported by both industrial demand and positive investor sentiment.

In global markets, spot gold was trading 0.38 per cent lower at $4,373.43 per ounce, while silver dropped nearly 1.3 per cent to $64.90 per ounce. The rise in crude oil prices due to the stalemate over the Strait of Hormuz has added uncertainty for investors.

The next key event for bullion traders is the US inflation report, scheduled for release on Wednesday. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said that the report will provide fresh signals on the Federal Reserve's monetary policy outlook.

The surge in gold and silver prices reflects the ongoing uncertainty in global markets, with investors seeking safe-haven assets. As the situation continues to evolve, it is likely that precious metal prices will remain volatile.

In the context of the Indian market, the rise in gold prices may impact consumer demand, particularly in the lead-up to the festive season. However, the current trend suggests that investors are prioritizing safe-haven assets over other investments.

The US inflation data will be closely watched by market participants, as it will provide insight into the Federal Reserve's future policy decisions. This, in turn, will influence the direction of gold and silver prices in the coming sessions.

Overall, the gold price surge to a two-month high of ₹1.57 lakh per 10 grams reflects the ongoing uncertainty in global markets and the desire for safe-haven assets. As the situation continues to unfold, it is likely that precious metal prices will remain a key focus for investors and market participants.