Precious metals rally to one-month peaks in India and internationally as traders factor in easing inflation concerns, a potential US-Iran agreement, and declining oil prices.
Gold prices rose for a second straight session on Wednesday to reach a one-month high in New Delhi, with traders tracking a sharp advance in international precious metals markets. According to the All India Sarafa Association, 99.9% pure gold climbed ₹2,500, or 1.7%, to ₹1,50,000 per 10 grams including taxes, up from ₹1,47,500 on Tuesday. The metal was last seen at similar levels on July 6, when it settled at ₹1,50,650 per 10 grams.
Silver also extended its gains after a pause in the previous session, jumping ₹6,200 to nearly a one-month peak of ₹2,32,700 per kilogram including taxes. The previous close was ₹2,26,500 per kg, and the metal was last near this range on July 9, when it finished at ₹2,32,000 per kg.
In global trade, spot gold rose $85.28, or 2.09%, to $4,162.76 per ounce, while silver advanced by a little more than 3% to $61.35 per ounce. Saumil Gandhi, senior analyst for commodities at HDFC Securities, said the rally reflected rising optimism that a potential US-Iran agreement on the Strait of Hormuz could ease energy-led inflation pressures and reduce the chances of further tightening by the Federal Reserve.
Praveen Singh, head of commodities at Mirae Asset ShareKhan, said lower crude prices had also helped lift gold by easing rate-hike worries, though he noted oil later recovered after Yemen’s Houthi movement threatened attacks on Saudi tankers in the northern Red Sea. Jateen Trivedi, vice-president for research at LKP Securities, said traders are now watching US ADP employment data, followed by nonfarm payrolls and unemployment figures later this week, for fresh clues on the Fed’s next move. Historical pricing data from market-tracking sites shows that gold and silver have already been prone to sharp swings in recent months, underscoring how quickly sentiment can shift in the bullion market.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
