Gold Surges to Two-Month High as Safe-Haven Buying Drives Prices Up

Gold prices surged to a two-month high in India, reaching Rs 1.57 lakh per 10 grams, as stronger investment demand and safe-haven buying drove the price up.

The All India Sarafa Association reported that gold prices rose by Rs 1,200 to Rs 1,57,200 per 10 grams, a significant increase from Monday's closing level of Rs 1,56,000. This marks the sixth consecutive session of rising gold prices, with the metal adding Rs 9,800 or 6.65% over the past six trading sessions.

Silver also saw a sharp rise, soaring by Rs 2,000 to Rs 2,42,000 per kilogram, its highest level in more than two months. The precious metals' price increase is attributed to increased safe-haven buying ahead of the US inflation data release, which may provide clues on the Federal Reserve's interest-rate outlook.

Experts predict that the next test for bullion traders will be the US inflation report, with the July consumer price report due on Wednesday and producer price numbers scheduled for Thursday offering fresh signals on the Federal Reserve's monetary policy outlook.