Gold and Silver Surge Amidst Weakening Rupee and Rising Geopolitical Tensions

Gold and silver prices in India rose significantly due to a weakening rupee against the US dollar and geopolitical tensions. Gold saw a rise of Rs 1,500 per 10 grams, while silver increased by Rs 12,000 per kilogram. Market sentiments remain influenced by geopolitical risks and economic data.

In the national capital, gold prices rose sharply by Rs 1,500 per 10 grams on Tuesday, reaching Rs 1.56 lakh, while silver soared over 4 per cent to Rs 2.77 lakh per kilogram. These gains are attributed to a falling rupee against the US dollar and bolstered domestic sentiment amid ongoing geopolitical tensions.

The All India Sarafa Association reported that 99.9 per cent pure gold saw an increase, marking an upward trend supported by the depreciating rupee, which hit an all-time low against the dollar. The domestic market's bullishness was noted by Saumil Gandhi, a senior analyst in commodities at HDFC Securities.

Globally, spot gold and silver retreated slightly amid a strong dollar and rising Treasury yields. Persisting geopolitical risks and inflation concerns continue to provide support to the bullion market, despite the upward pressure being capped by factors such as expected Federal Reserve actions.