Gold and Silver Soar to Three-Month Highs Amid Weak US Dollar

Gold and silver prices surged in India's national capital on Friday, reaching their highest levels in over three months. The precious metals benefited from a weak US dollar and firm global trends, driving investors towards safe-haven assets.

The yellow metal of 99.9% purity rose by Rs 1,200 to Rs 1,63,500 per 10 grams (inclusive of all taxes), its highest level since May 19, when it was at Rs 1,63,600 per 10 grams. Silver also mirrored the bullish trend, jumping Rs 5,000 to Rs 2,50,000 per kilogram (inclusive of all taxes), its highest level in 15 weeks.

The rally in gold and silver prices was supported by a weaker US dollar and falling longer-term Treasury bond yields. Market analysts attributed the move to the US Treasury Department's expansion of its bond-buying programme, aimed at containing borrowing costs.