Gold Prices Surge Past ₹1,60,000 as Dollar Weakens

Gold prices continued their upward trend, breaking through the ₹1,60,000 per 10 gram mark in India. This rally is attributed to a weak US dollar and volatile treasury yields in the US.

The price of gold surged by ₹3,540 per 10 grams, reaching a high of ₹1,60,620 against the previous close of ₹1,57,080, according to data from the India Bullion and Jewellers Association of India. Silver prices also rose to ₹2,46,630 per kg.

MCX gold prices jumped over 1.3% to cross the ₹1.61 lakh per 10 grams mark, while MCX silver prices surged 1.8% to move above ₹2.47 lakh per kg. In fact, MCX gold has gained over ₹7,100 per 10 grams, or around 5%, in three sessions.

The rally in gold and silver prices is driven by a combination of factors, including a weak US dollar, changing US bond yields, geopolitical tensions, and growing concerns over the US fiscal position. The US debt has crossed $40 trillion, and the Treasury has announced larger long-duration bond buybacks of at least $4 billion per operation.

According to Manav Modi, Commodities Analyst, Motilal Oswal Financial Services, gold prices traded near their highest levels in more than two and a half months as investors balanced support from lower bond yields against renewed concerns over inflation and rising fiscal risks.