Gold extends its rally for a seventh straight session in India, driven by safe-haven demand amid geopolitical unrest and cautious US inflation data, while silver hits new highs supported by investment flows and future market prospects.
Gold extended its rally for a seventh straight session on Wednesday, climbing Rs 2,600 to Rs 1,59,800 per 10 grams in New Delhi as investors continued to pile into the metal on safe-haven demand ahead of key US inflation data. According to the All India Sarafa Association, the price of 99.9 per cent pure gold has risen Rs 12,400, or 8.4 per cent, since August 3. Silver also surged, gaining Rs 4,000 to Rs 2,46,000 per kilogram as buying broadened across the bullion market.
Market watchers said the advance reflected a mix of geopolitical unease and financial caution. Gaurav Garg, head of research at Lemonn Markets Desk, said demand had been boosted by tensions in West Asia, while Saumil Gandhi of HDFC Securities pointed to softer US Treasury yields and a steadier dollar as additional support. Analysts have also warned that bullion could stay volatile as traders weigh the path of US interest rates against inflation pressures tied to crude oil and conflict in the Middle East.
The latest move in gold came after US consumer prices rose 3.4 per cent in July, in line with forecasts and only slightly below June’s 3.5 per cent reading. That left the Federal Reserve with little room to ease policy quickly, even as markets continue to debate when rate cuts might begin. Higher energy costs remain a concern for precious metals because they can keep inflation elevated and borrowing costs higher for longer, limiting upside for assets that do not yield interest.
Silver is drawing its own wave of support. Praveen Singh of Mirae Asset ShareKhan said exchange-traded fund holdings have recovered to 97.24 million ounces, their highest level since late June. Citi Research has also kept a bullish medium-term view on silver, saying the metal could reach as high as $90 an ounce over the next six to 12 months, helped by investment flows and a persistent market deficit. The bank expects demand from artificial intelligence, 5G and electric vehicles to keep the market short through 2027, even as solar demand slows because of efficiency gains and new technology.
That optimism sits alongside a more cautious tone from some of the same market houses. Citi has separately argued that gold may have limited further upside in 2026, while broader market commentary from other analysts has stressed that any shift in the US-Iran standoff, oil prices or the Fed’s next move could quickly change the picture. For now, traders in India are also watching seasonal demand, with buying expected to strengthen in the festive and wedding period later in the year.
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.
