Gold Prices Surge on Weaker Dollar and Strong Demand

Gold prices continued their upward trend in major Indian cities on August 8, extending gains for the fourth consecutive session.

The precious metal's value increased across Mumbai, Delhi, Bengaluru, and Chennai, with analysts attributing the rally to a weaker US dollar, softer crude oil prices, easing inflation expectations, and renewed institutional demand for bullion.

According to local traders in Delhi, gold prices rose by ₹200 to ₹1.54 lakh per 10 grams on August 8, while silver remained unchanged at ₹2,34,800 per kilogram, inclusive of all taxes.

Gaurav Garg, Head of Research at Lemonn Markets Desk, said that the rally in gold prices was heading for its strongest weekly performance since January and attributed it to the weak dollar, easing inflation expectations, and continued demand for bullion ahead of the US non-farm payrolls report.