Gold Surges Past Rs 79,000, Silver Follows Suit

Gold and silver prices have skyrocketed in the domestic bullion market due to the rupee’s depreciation against the US dollar, strong demand from jewelers, and ongoing geopolitical tensions, including the Ukraine-Russia war and unrest in the Middle East. These factors have made gold a preferred investment haven for investors.

Gold Hits New Heights

In the national capital, Delhi, 24-carat gold surged by Rs 350 on Friday, reaching Rs 79,200 per 10 grams. On Thursday, gold was trading at Rs 78,850 per 10 grams. Similarly, 99.5% pure gold rose by Rs 350, reaching Rs 78,800 per 10 grams.

Silver Joins the Rally

Silver prices also witnessed a sharp rise for the fourth consecutive session. On Friday, the price of silver jumped by Rs 900 per kilogram, reaching Rs 91,700. Over the past four sessions, silver prices have increased by Rs 3,550 per kilogram.

Rupee Weakens Against the Dollar

A surge in demand from bankers and importers towards the end of the month caused the Indian rupee to weaken significantly against the US dollar. During intraday trading on Friday in the forex market, the rupee fell to a near two-year low of Rs 85.80 against the dollar. However, thanks to the RBI’s intervention, it recovered slightly, closing at Rs 85.50, marking a loss of 23 paise.

Futures Market Trends

On the Multi Commodity Exchange (MCX):

• Gold February delivery dipped by Rs 56, settling at Rs 76,771 per 10 grams.
• Silver March delivery fell by Rs 27, closing at Rs 89,609 per kilogram.

In international markets:

• COMEX Gold Futures dropped by $13.70, trading at $2,640.20 per ounce.
• COMEX Silver Futures declined by 0.74%, reaching $30.17 per ounce.

Key Drivers

• Rupee depreciation: The weakening rupee has increased the cost of imports, boosting gold and silver prices.
• Geopolitical tensions: The ongoing Ukraine-Russia conflict and Middle East unrest have spurred demand for safe-haven assets like gold.
• Jewelers’ demand: Strong buying from jewelers ahead of the wedding season has further supported the rally.

Gold and silver continue to shine brightly, reflecting both global and domestic economic trends.