Gold Surges Past ₹1,60,000 on Weak Dollar
Gold prices continued to surge on Monday, crossing the ₹1,60,000 per 10-gram mark as the US dollar weakened against key currencies. The price of gold rose by ₹3,540 per 10 grams to hit a high of ₹1,60,620 per 10 grams, according to data from the India Bullion and Jewellers Association of India. Silver prices also rallied, reaching ₹2,46,630 per kg.
The rally in gold and silver prices was driven by a combination of factors, including a weak US dollar, changing US bond yields, geopolitical tensions, and concerns over the US fiscal position. The total federal debt has surpassed $40 trillion, which initially pushed yields and the dollar lower and supported precious metals.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, noted that 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.