Gold Prices Rise for Second Straight Day in India

Gold prices rose for the second consecutive day in India's national capital on Friday, reaching nearly ₹1.61 lakh per 10 grams. The price of 99.9% purity gold increased by ₹1,400 to ₹1,60,900 per 10 grams from Thursday's closing level of ₹1,59,500.

However, silver prices remained unchanged at ₹2,40,500 per kilogram. Traders attributed the rise in gold prices to sustained buying interest in the domestic bullion market, despite investors becoming cautious ahead of key global economic data that could influence interest rates and precious metal outlooks.

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, noted that silver's investment demand is subdued, which has led to concerns over dealer inventories. He stated that around 2,000 tonnes of silver ordered by Indian dealers could add to the inventory overhang if demand does not recover.

Market attention is focused on the upcoming US employment data and inflation figures for further cues on the US Federal Reserve's monetary policy outlook. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, noted that weaker-than-expected data could extend the dollar's decline and support gold prices, while stronger figures or renewed hawkish signals from the Fed could revive rate-hike expectations and weigh on prices.