Gold Hits Three-Month High Amid Weak US Dollar and Falling Treasury Yields

Gold prices surged to a three-month high in India on Thursday, reaching Rs 1.62 lakh per 10 grams as investors turned to precious metals amid a weak US dollar.

The yellow metal of 99.9 per cent purity rose by Rs 4,300 to Rs 1,62,300 per 10 grams (inclusive of all taxes), according to local traders. This was the highest price seen since May 26, when it was quoted at Rs 1,62,400 per 10 grams.

Silver also rallied, soaring to a seven-week high of Rs 2,45,000 per kilogram (inclusive of all taxes) from Rs 2,35,000 per kg. This was the highest price seen since July 3, when it traded at Rs 2,45,000 per kg.

Analysts attributed the rally in spot bullion prices to a sharp decline in the US dollar and Treasury yields, which improved the appeal of assets like gold. The dollar index slid to a three-month low, and lower Treasury bond yields made gold more attractive.