Gold Prices Soar to Seven-Week High in India on Weaker Rupee

Gold prices rose to a seven-week high in India's national capital on Thursday, driven by a weaker rupee and firm global trends. The price of 99.9 per cent purity gold jumped by Rs 3,800 to Rs 1,53,800 per 10 grams (inclusive of all taxes), surpassing its previous high of Rs 1,53,440 per 10 grams on June 18.

Market participants attributed the increase in gold prices to a weaker rupee, which depreciated by 16 paise to settle at 95.24 against the US dollar. They also pointed out that gains in international gold prices were supported by a softer US dollar and lower US Treasury yields.

Gaurav Garg, Head of Research at Lemonn Markets Desk, noted that gold prices climbed to a seven-week high as a softer US dollar and expectations of a diplomatic breakthrough in the West Asia conflict strengthened demand for the precious metal.