Gold and silver prices in Delhi surged for a second consecutive session, reversing recent declines amid renewed global investment interest and changing US monetary policy expectations.
Gold and silver prices extended their climb in New Delhi on Tuesday, with jewellers and stockists lifting purchases for a second straight session, according to the All India Sarafa Association. Gold of 99.9 per cent purity rose by ₹2,000 to ₹1,58,800 per 10 grams, while silver added ₹730 to ₹2,40,730 per kilogram, both inclusive of taxes. The move took gold back to a level close to where it had traded in late February, when Delhi rates briefly touched ₹1.58 lakh, according to market reports.
The latest advance marks a sharp reversal from recent weakness. On July 24, Delhi gold prices had dropped by ₹2,000 to ₹1.47 lakh per 10 grams, while silver fell by ₹5,000 to ₹2.24 lakh per kilogram, amid heavy selling and profit-taking, according to another market report. By July 30, gold had recovered to ₹1.48 lakh per 10 grams on renewed retail buying, showing how quickly sentiment in the bullion market has shifted.
In overseas trade, spot gold was lower by 0.5 per cent at $4,394.57 an ounce, while silver fell a little more than 1 per cent to $65.08 an ounce. Praveen Singh, head of commodities at Mirae Asset ShareKhan, said gold was holding near $4,392 an ounce as crude oil rebounded on supply concerns from West Asia after the 60-day US-Iran ceasefire expired. He said the broader investment case for bullion remained supported by rising gold-backed exchange-traded fund holdings, which climbed again on Monday to 97.39 million ounces.
Kaynat Chainwala of Kotak Securities said silver eased towards $65 an ounce as firmer US Treasury yields and profit-taking weighed on prices. Even so, she said the wider backdrop for bullion remained constructive because of softer expectations for Federal Reserve policy, sustained central bank buying led by China and steady investor demand. Traders are now watching the Federal Open Market Committee’s July minutes and the Jackson Hole symposium for clearer signals on the US rate path, which could determine whether gold and silver keep swinging between gains and pullbacks in the near term.
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