Gold Prices Hit ₹1.56 Lakh Per 10 Grams

Gold prices rose for the fifth consecutive session, reaching ₹1.56 lakh per 10 grams in the national capital on Monday. This increase of ₹2,000 from the previous session was largely due to the depreciation of the rupee, which made imported bullion more expensive in the domestic market.

The price of gold with 99.9 per cent purity had closed at ₹1,54,000 per 10 grams in the previous session. Silver also experienced an upward movement, surging ₹5,200 to ₹2,40,000 per kilogram, inclusive of all taxes, according to the All India Sarafa Association.

Traders attributed the rise in gold prices to the depreciation of the rupee, which made imported bullion more expensive. However, marginal losses in overseas gold prices limited the upside. On Monday, the rupee declined by 11 paise to settle at 95.28 against the US dollar, amid a firm greenback and a rise in global crude oil prices.

Analysts believe that the impact of the rupee's depreciation on gold prices will continue to be significant. According to Jateen Trivedi, VP Research Analyst at LKP Securities, gold traded positively in the domestic market, while the yellow metal in global markets remained largely flat after the recent rally.

In international markets, spot gold was trading marginally lower at $4,335.32 per ounce, while silver was trading higher at $63.90 an ounce. Despite the mild pullback, bullion remained well supported by expectations of a less aggressive Federal Reserve and lingering geopolitical tensions in West Asia.

The outlook for precious metals remains supportive, although elevated oil prices could limit further gains. Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, believes that precious metals are expected to see good support until there is a sharp spike in oil prices. However, the upside is likely to be capped due to elevated oil prices.

The rise in gold prices is likely to have a significant impact on the domestic market, particularly with the festive season approaching. Investors are awaiting fresh macroeconomic triggers, which could further influence the prices of precious metals.

In conclusion, the rise in gold prices to ₹1.56 lakh per 10 grams is a significant development in the domestic market. The depreciation of the rupee and the marginal losses in overseas gold prices have contributed to this increase. As the festive season approaches, it will be interesting to see how the prices of precious metals evolve in response to changing market dynamics.

The impact of the rise in gold prices will be closely watched by investors and market analysts. The supportive outlook for precious metals, despite elevated oil prices, suggests that the prices of gold and silver may continue to remain firm in the coming days.

Overall, the rise in gold prices to ₹1.56 lakh per 10 grams is a significant development that reflects the complex interplay of global and domestic market factors. As the market continues to evolve, it will be important to monitor the prices of precious metals and their impact on the domestic economy.