Gold Soars to Seven-Week High on Rupee Depreciation and Global Trends

Gold prices surged to a seven-week high in India's national capital on Thursday, fueled by rupee depreciation and firm global trends. The precious metal of 99.9% purity climbed Rs 3,800 to Rs 1,53,800 per 10 grams, exceeding its previous peak of Rs 1,53,440 per 10 grams on June 18.

A weaker rupee made imported bullion more expensive in the domestic market, while gains in overseas gold prices amid a softer US dollar and easing Treasury yields lent further support to the precious metals.

Traders attributed the rally to expectations of a diplomatic breakthrough in West Asia conflict, which boosted demand for gold. Gaurav Garg, Head of Research at Lemonn Markets Desk, said that a weaker dollar, softer US Treasury bond yields, and sustained investor demand have driven up prices.