Gold Rush: Weak Dollar Drives Precious Metals to Three-Month Highs

Gold and silver prices have surged to over three-month highs in India's national capital as investors seek safe-haven assets due to a weak US dollar. The yellow metal of 99.9 per cent purity rose by Rs 1,200 to Rs 1,63,500 per 10 grams on Friday, its highest level since May 19. Silver also joined the rally, jumping Rs 5,000 to Rs 2,50,000 per kilogram, a 15-week high.

The US dollar's weakness and falling bond yields have driven investors towards precious metals, according to analysts. Gaurav Garg, Head of Research at Lemonn Markets Desk, said gold extended its rally for the third consecutive weekly gain, while silver remained strong supported by the weaker US dollar and falling longer-term Treasury bond yields.

Spot gold prices in international markets also rose by 2 per cent to USD 4,600.91 per ounce on Friday, its highest level since May 18, 2026. The precious metal has gained more than 4 per cent this week after the US Treasury Department expanded its bond-buying programme.