Gold Jumps ₹1,900 To ₹1.49 Lakh Per 10 Grams

Gold prices in the national capital jumped by ₹1,900 to a two-week high of ₹1.49 lakh per 10 grams on Wednesday. This increase was driven by robust physical demand and firm trends in global markets. The yellow metal of 99.9 per cent purity appreciated by ₹1,900 to ₹1,49,600 per 10 grams, inclusive of all taxes.

According to the All India Sarafa Association, gold had settled at ₹1,47,700 per 10 grams on Tuesday. On July 7, gold was quoted at ₹1,49,250 per 10 grams in the local market. This recent surge marks the third straight session of gains for gold, supported by firm overseas prices, renewed physical demand, and value buying after last week's correction.

Silver also rebounded after six consecutive sessions of losses, rising ₹8,500 to ₹2,30,000 per kilogram, inclusive of all taxes. The white metal had closed at ₹2,21,500 per kg in the preceding session. Traders attributed the rally to positive cues from global markets, with prices rallying to a two-week high following a recovery in physical demand.

Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said, "Gold advanced on Wednesday, tracking positive cues from global markets, with prices rallying to a two-week high, following a recovery in physical demand." The rally was also supported by value buying and renewed inflows into exchange-traded funds (ETFs), reflecting improving investor sentiment following the recent decline.

Globally, spot gold gained $47.43, or 1.16 per cent, to trade at $4,125.24 per ounce, and silver rose nearly 1 per cent to $59.32 per ounce. Kaynat Chainwala, AVP, Commodity Research, Kotak Securities, noted that spot gold hit a two-week high of $4,140 per ounce in intraday trade, while silver edged closer to $60, with both metals rallying despite continued escalation in West Asia and crude oil holding at five-week highs.

The US Secretary of State's comments on the US-Iran peace talks have also impacted the market, with investors in a wait-and-watch mode. Monetary policy expectations continue to dominate bullion trading, with traders closely tracking next week's Federal Reserve Open Market Committee meeting.

Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, identified three key factors supporting bullion: expectations of US-Iran peace talks resuming sooner rather than later, renewed demand for precious metals after the Trump administration began imposing tariffs again, and gold's ability to sustain above the $4,000-an-ounce level.

The recent surge in gold prices is significant, as it reflects the ongoing trends in global markets and the demand for precious metals. As the market continues to evolve, it is likely that gold prices will remain volatile, influenced by various factors, including geopolitical developments and monetary policy decisions.

In conclusion, the rally in gold prices to a two-week high of ₹1.49 lakh per 10 grams is a notable development, driven by firm global cues and renewed physical demand. As the market looks ahead to the Federal Reserve Open Market Committee meeting, it is likely that gold prices will remain capped until there is greater policy clarity.

The significance of this development for India is that it may impact the country's import bill, as gold is a major contributor to the country's imports. Additionally, the rally in gold prices may also have implications for the Indian economy, as it may influence inflation and interest rates.

Overall, the recent surge in gold prices is a significant development that reflects the ongoing trends in global markets and the demand for precious metals. As the market continues to evolve, it is likely that gold prices will remain volatile, influenced by various factors, including geopolitical developments and monetary policy decisions.