India’s gold and silver markets surged to new milestones amid rising international bullion prices and global economic concerns, with investors reacting to inflation fears and central bank buying activity.
India’s gold and silver markets extended their sharp climb on Tuesday, with contracts on the Multi Commodity Exchange breaking through fresh milestones as international bullion prices surged. Gold moved above ₹1.55 lakh, while silver climbed beyond ₹2.41 lakh, reflecting a broader wave of buying across precious metals.
The rally was supported by a powerful move in global markets, where spot gold rose to a two-month peak above $4,400 an ounce and silver traded close to $66 an ounce. GoodReturns said the advance came even as crude oil stayed elevated, with WTI above $82 a barrel and Brent near $87.50, while the dollar held steady against a basket of major currencies.
Market sentiment also appeared to be shaped by mounting concern over inflation and the prospect of higher interest rates, both of which can sharpen demand for hard assets. Trading Economics data cited by GoodReturns showed Chinese investors adding to bullion holdings, with gold-backed exchange-traded funds in China recording their longest inflow streak in months. It also said the People’s Bank of China accelerated purchases, adding about 20 tonnes in July after roughly 15 tonnes in June, the biggest monthly increase since October 2023. Investors were also watching for a US inflation reading later in the week, which could offer fresh clues on the Federal Reserve’s next move.
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