Gold and Silver Surge as Dollar Weakens and Inflation Pressures Ease

Gold and silver prices have surged in recent days due to a weakening US dollar and reduced inflation pressures. The precious metals have been gaining ground since July 29, when gold dropped to $3995 per ounce. In contrast, gold has now reached an intra-day high of $4300 per ounce.

In the Indian market, gold prices have risen from Rs 1.40 lakh to Rs 1.50 lakh per 10 gm. Silver prices have also increased, moving up from $56.75 to $62.90 per ounce in the international market and from Rs 2.28 lakh to Rs 2.4 lakh per kg in India.

Ajay Kedia, MD of Kedia Commodities, attributes the rally in gold and silver to the US Federal Reserve's reduced chances of increasing interest rates. The easing of inflation pressures due to diplomatic talks on opening the Strait of Hormuz and OPEC's commitment to supply oil has also contributed to this trend.

Analysts expect the prices to rebound to $4600 in December, according to Deutsche Bank, while Kedia believes gold may move up to $4850-$4900 levels by 2026. Gold touched an all-time high of $5600 in January, and analysts anticipate a price increase next year.