Gold rates on Tuesday surged Rs 600 to reach Rs 1,00,770 per 10 grams in the national capital, supported by a weaker rupee and positive global trends.
In its previous session on Monday, the yellow metal had settled at Rs 1,00,170 per 10 grams.
The yellow metal continued its upward march on Tuesday, giving investors and buyers plenty to watch as festive and wedding demand inches closer.
Meanwhile, silver stole the spotlight with a stunning rally of Rs 3,000, revisiting its all-time high level of Rs 1,18,000 per kg (inclusive of all taxes). The white metal had finished at Rs 1,15,000 on Monday.
Experts attributed Tuesday’s rise in bullion prices to global and domestic triggers that have boosted the appeal of safe-haven assets. “Gold prices rose on Tuesday as investors sought traditional safe-haven assets after the US President Donald Trump’s decision to remove Federal Reserve Governor Lisa Cook, which raised concerns about the independence of the central bank,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
According to Gandhi, Trump’s decision exerted additional pressure on the US Federal Reserve’s leadership to lower interest rates sooner rather than later, a move that typically strengthens demand for non-yielding assets like gold.
Currency movements added to the momentum. The rupee depreciated by 12 paise to close at 87.68 (provisional) against the US dollar on Tuesday, tracking weak domestic markets. Sentiment turned cautious after the US issued a draft notice outlining plans to impose an additional 25 per cent tariff on Indian products. A weaker rupee makes imported gold more expensive, thereby pushing domestic prices higher.
On the international front, spot gold was trading 0.37 per cent higher at USD 3,378.37 per ounce in New York. “Spot gold surged, buoyed by renewed dollar weakness amid concerns over the US central bank’s independence after President Trump dismissed Fed Governor Lisa Cook,” noted Kaynat Chainwala, AVP Commodity Research, Kotak Securities.
Interestingly, silver showed a mixed picture globally. While domestic silver prices surged sharply, spot silver in international markets slipped 0.21 per cent to trade at USD 38.48 per ounce.
Chintan Mehta, CEO of Abans Financial Services, highlighted that geopolitical and trade uncertainties are adding another layer of support to precious metals. “Uncertainty around tariffs is adding another layer of support. Trump’s move to impose an additional 25 per cent tariffs on India starting on August 27, coupled with escalating tensions in the Russia-Ukraine war, has left traders sceptical about any meaningful progress in peace talks,” he explained.
Additionally, central banks around the world remain steady buyers of gold. Countries such as China and Turkey have been steadily expanding their gold reserves, lending further support to the metal. “Investors will focus on key US macroeconomic data releases, including jobless claims and GDP revisions, to gauge the Fed’s next steps for the interest rate cycle,” Mehta added.
