Gold Surges to Seven-Week High on Weak Rupee and Diplomatic Developments

Gold prices surged to a seven-week high in India on Thursday, reaching Rs 1.53 lakh per 10 grams due to a weaker rupee and firm global trends.

The price of 99.9 percent purity gold rose by Rs 3,800 from Wednesday's closing level of Rs 1,50,000 per 10 grams to reach Rs 1,53,800 per 10 grams (inclusive of all taxes).

Market participants attributed the increase in gold prices to the depreciation of the rupee against the US dollar. The rupee depreciated by 16 paise to settle at 95.24 (provisional) against the US dollar on Thursday.

Gaurav Garg, Head of Research at Lemonn Markets Desk, noted that a softer US dollar, lower Treasury yields, and expectations of a diplomatic breakthrough in the West Asia conflict strengthened demand for gold.