Gold Reaches 3-Month High At ₹1.62 Lakh Per 10 Grams

Gold prices in the national capital rose sharply on Thursday, reaching a three-month high of ₹1.62 lakh per 10 grams. This increase of ₹4,300 was driven by investors turning to precious metals due to a weak US dollar. The price of gold with 99.9 per cent purity was ₹1,62,300 per 10 grams, inclusive of all taxes, according to local traders.

The previous day, gold had closed at ₹1,58,000 per 10 grams. The last time gold was at a comparable level was on May 26, when it was quoted at ₹1,62,400 per 10 grams.

Silver also saw a significant increase, rising to a seven-week high of ₹2,45,000 per kilogram, up from ₹2,35,000 per kg. This level was last seen on July 3, when silver was quoted at ₹2,45,000 per kg.

According to Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, gold prices were supported by a sharp decline in the US dollar and Treasury yields. The dollar index slid to a three-month low, while lower Treasury bond yields improved the appeal of assets such as gold.

Despite the rally in spot bullion prices, global prices retreated. Gold dipped $66.31, or 1.47 per cent, to $4,456.72 per ounce, and silver dropped nearly 2 per cent to $65.82 per ounce.

The US Treasury's decision to increase long-dated bond buybacks also supported gold prices. The US Treasury Department said it will at least double the buyback quantum of off-the-run securities from $2 billion to $4 billion in the current August quarter.

This move is seen as a sign that the US Treasury will keep a close watch on the bond market, with the possibility of further action not ruled out.

The increase in gold and silver prices is significant for investors who are looking for safe-haven assets amid economic uncertainty. The weak US dollar and lower Treasury yields have improved the appeal of precious metals, making them an attractive option for investors.

In the context of the Indian market, the increase in gold prices is likely to impact the demand for gold in the country. India is one of the largest consumers of gold, and any change in prices can have a significant impact on the market.

Overall, the rise in gold and silver prices is a significant development for investors and consumers alike. It reflects the ongoing economic uncertainty and the appeal of precious metals as a safe-haven asset.

The increase in gold prices to a three-month high is a notable trend in the precious metals market. It indicates a shift in investor sentiment towards safe-haven assets, driven by economic uncertainty and a weak US dollar. As the global economy continues to evolve, it will be interesting to see how gold and silver prices move in the future.

In conclusion, the rise in gold and silver prices is a significant development that reflects the ongoing economic uncertainty and the appeal of precious metals as a safe-haven asset. Investors and consumers should keep a close eye on the market trends to make informed decisions.