Gold Soars Rs 12,400 in Seven Days Amid Geopolitical Tensions and Safe-Haven Buying
Gold prices surged to Rs 1.59 lakh per 10 grams in India's national capital on Wednesday, marking its seventh consecutive day of gains. The precious metal rose by Rs 2,600 from Tuesday's closing level of Rs 1,57,200.
This significant rally has elevated gold prices by Rs 12,400, or 8.4 per cent, from August 3's price of Rs 1,47,400 per 10 grams. Analysts attribute the increase to firm global demand and strong investment appetite, as well as investors' safe-haven buying ahead of US inflation data.
Gold also gained in international markets, rising by USD 44.48 or 1.02 per cent to USD 4,412.63 per ounce. The metal's rally was further fueled by the release of broadly expected US inflation numbers, which rose more than 1 per cent to trade above USD 4,411 per ounce.
Meanwhile, silver also joined gold in its price surge, increasing by Rs 4,000 to Rs 2,46,000 per kilogram from Tuesday's closing level. The white metal is expected to remain a key driver of investment flows, with Citi Research retaining its forecast for the metal to climb as much as USD 90 per ounce over the next six to twelve months.
India's strong demand for silver during the festive and wedding season in the fourth quarter is also expected to contribute to the metal's growth. The global financial services firm, Citi, expects the global silver market to remain in deficit through 2027 due to resilient demand from artificial intelligence, 5G, and electric vehicles.