Gold, Silver Prices Soar to Three-Month Highs on Weak US Dollar

Gold and silver prices surged to three-month highs in India as a weak US dollar and falling bond yields drove investors towards safe-haven assets.

The price of gold, 99.9% pure, rose by Rs 1,200 to Rs 1,63,500 per 10 grams, its highest level since May 19 when it was at Rs 1,63,600 per 10 grams.

Silver also mirrored the bullish trend, jumping Rs 5,000 to Rs 2,50,000 per kilogram, its highest level in 15 weeks, after being quoted at Rs 2,49,500 per kilogram on May 4.

Market analysts attributed the gains to a weak US dollar and falling longer-term Treasury bond yields, as well as strong investment demand for precious metals.