Gold and Silver Prices Surge Again; Gold Breaches ₹1.61 Lakh Amid Strong Market Rally

Gold and silver prices registered a sharp surge on Tuesday in the bullion market of the national capital, driven by rising demand for safe-haven assets, a weakening US dollar, and softer crude oil prices.

According to the latest data released by the All India Bullion Association, gold prices with 99.9% purity jumped by ₹1,050 to reach ₹1,61,450 per 10 grams, including taxes.

In the previous trading session on Monday, gold had closed at ₹1,60,400 per 10 grams.

Silver prices also witnessed strong momentum in domestic markets. The white metal surged by ₹1,300 to touch ₹2,71,000 per kilogram, compared to ₹2,69,700 per kilogram in the previous session.

Weak US Dollar and Falling Crude Oil Boost Precious Metals

Global economic factors played a major role in pushing bullion prices higher.

In international markets, spot gold climbed nearly 1% to trade around $4,528.75 per ounce, while silver prices gained almost 2% to reach $76.29 per ounce.

Market analysts believe that declining crude oil prices have helped ease inflation-related concerns globally, improving investor sentiment toward precious metals.

According to commodity experts, softer oil prices often reduce inflationary pressure and strengthen the attractiveness of gold as a long-term investment and safe-haven asset.

Middle East Developments Support Market Sentiment

Geopolitical developments in the Middle East also contributed to the rally in bullion prices.

Reports suggesting a partial ceasefire understanding between Hezbollah and Israel helped reduce immediate regional tensions, although investors remain cautious regarding broader geopolitical uncertainty.

Analysts say precious metals continue to attract investors whenever global markets face uncertainty linked to geopolitical conflicts, inflation, or economic slowdown fears.

Weak Indian Rupee Supports Domestic Gold Rally

The depreciation of the Indian Rupee has further strengthened the rally in domestic gold prices.

According to Jatin Trivedi, VP and Research Analyst at LKP Securities, the weakening rupee has helped offset pressure arising from global market volatility.

A weaker rupee generally increases the cost of imported commodities such as gold, thereby supporting higher domestic bullion prices.

Experts also pointed out that lower US Treasury yields and continued weakness in the US dollar have enhanced gold’s appeal among investors seeking safer investment options.

Investors Watching US Economic Data Closely

Market participants are now closely monitoring upcoming economic developments in the United States, which could determine the next direction for gold and silver prices.

Investors are particularly focused on:

US job openings data

Statements from Federal Reserve officials

The upcoming Non-Farm Payrolls (NFP) report scheduled for Friday

These economic indicators are expected to provide fresh clues regarding the future interest rate policy of the Federal Reserve.

Interest rate expectations significantly influence gold prices, as lower rates generally increase the attractiveness of non-yielding assets like gold.

Market Outlook: Volatility Likely to Continue

Commodity experts believe bullion markets may remain volatile in the coming sessions due to ongoing geopolitical developments and global economic uncertainty.

Investors are also keeping a close watch on diplomatic discussions between Washington and Tehran, as any breakthrough or escalation could impact commodity markets globally.

Despite short-term fluctuations, analysts say gold continues to remain one of the preferred safe-haven assets during periods of uncertainty, currency weakness, and financial market volatility.

With global investors balancing hopes of diplomatic progress against concerns over economic instability, gold and silver are likely to remain in focus throughout the week.