Gold Prices Surge 500 Rupees on Weak Rupee, Global Trends
Gold prices in Delhi surged by Rs 500 per 10 grams to Rs 1,49,800 due to a weaker rupee and strong global cues. The Indian rupee's slide below 96-per-dollar provided significant support to domestic gold prices.
Globally, spot gold increased after soft US inflation data reduced expectations of a Federal Reserve rate hike. Despite the rise in gold, silver prices declined by Rs 5,000 per kilogram in the Delhi market.
Experts note that while gold gained from inflation data, oil price spikes and geopolitical uncertainty also played a role. Gaurav Garg, Head of Research at Lemonn, said 'Gold spiked higher on softer inflation data; however, the rally was thwarted by a spike in oil prices as uncertainty in Hormuz continues and refined product shortages continue to linger.'