Gold Surges Rs 500 in Delhi as Rupee Weakens Amidst Firm Global Prices
Gold prices in Delhi have risen for the second consecutive session on October 1. The precious metal gained Rs 500 per 10 grams, reaching a price of Rs 1.49 lakh inclusive of taxes. This increase comes amidst a weaker Indian rupee and firm international gold prices.
The rupee slipped below the Rs 96-per-dollar mark on Thursday, its weakest closing level in over two months. A weaker rupee makes gold more expensive for importers, supporting local prices.
Gold also benefited from softer-than-expected US inflation data, which reduced expectations of a Federal Reserve rate hike. Lower interest rates can support gold by reducing the opportunity cost of holding the non-yielding asset.
Despite the two-day recovery, gold remains lower for the week, having declined Rs 2,800 or nearly 2% during the period.