Gold Prices Soar to Seven-Week High on Weaker Rupee and Diplomatic Hopes

Gold prices in India surged to a seven-week high on Thursday, August 7, reaching Rs 1.53 lakh per 10 grams in Delhi. The price increase of Rs 3,800 was driven by a weaker rupee and firm global trends.

The yellow metal's value rose due to the depreciation of the rupee against the US dollar, which made imported bullion more expensive in the domestic market.

According to Gaurav Garg, Head of Research at Lemonn Markets Desk, the rally was also supported by a weaker dollar and softer US Treasury bond yields. He added that expectations of a diplomatic breakthrough in West Asia's conflict have boosted demand for precious metals.

Silver prices also rose, increasing by Rs 2,100 to Rs 2,34,800 per kilogram.