Delhi Gold Prices Hit 2-Month High: Gold Surges 9800 Rupees In 6 Days

The gold and silver market in India's national capital, Delhi, is witnessing an unprecedented rally that shows no signs of slowing down. On Tuesday, gold prices surged by 1200 rupees, marking the sixth consecutive day of gains. This continuous upward trend has pushed the precious metal to its highest level in two months, while over the last six trading sessions alone, the price of gold has increased by a staggering 9800 rupees per ten grams. Similarly, silver prices have also seen a significant jump, reaching 2,42,000 rupees per kilogram. This surge comes at a time when international markets are experiencing a slight dip in bullion prices while crude oil prices continue to rise, while market experts suggest that this volatility in gold and silver prices is likely to persist in the coming days.

Gold Surges 9800 Rupees in Just 6 Days

Gold prices have maintained their winning streak for the sixth straight session. On Tuesday, the price of the yellow metal in the national capital rose by 1200 rupees to reach a two-month high of 1,57,200 rupees per 10 grams. This rally is primarily driven by strong investment demand from traders, even as oil prices remain firm. 9 percent purity jumped from Monday's closing level of 1,56,000 rupees per 10 grams to 1,57,200 rupees per 10 grams, inclusive of all taxes. The last time gold traded near these levels was on June 12, when it was quoted at 1,56,900 rupees per 10 grams.

65 percent increase from the 1,47,400 rupees per 10 grams recorded on August 3. Silver is following a similar trajectory, with its price increasing by 2000 rupees to reach 2,42,000 rupees per kilogram, including all taxes. This has pushed the white metal to its highest level in over two months. Silver was last seen trading around these levels on April 30, when it was quoted at 2,42,700 rupees per kilogram.

Factors Driving the Price Hike

Gaurav Garg, Head of Research at Lemon Markets Desk, noted that gold continued its rally for the sixth consecutive session, climbing to its highest point in more than two months. He attributed this surge to investors increasing their safe-haven buying ahead of crucial US inflation data. This data is expected to provide fresh signals regarding the Federal Reserve's stance on interest rates. Garg also mentioned that silver remained bullish, supported by both industrial demand and positive investor sentiment. 90 US dollars per ounce. Initial attempts by gold to rally in foreign markets eventually faded.

Future Outlook for Gold and Silver

Praveen Singh, Associate Vice President of Fundamental Currencies and Commodities at Mirae Asset Sharekhan, stated that while spot prices rose to 4,435 US dollars per ounce due to rising crude oil rates, the gains were eventually capped. The ongoing standoff at the Strait of Hormuz has further pushed crude oil prices higher, adding another layer of uncertainty for investors. Meanwhile, geopolitical tensions have escalated as Iran claimed that the United States is preparing for a military operation, leading to orders for the IRGC to remain on high alert.

The next major test for bullion traders will be the upcoming US inflation reports. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, highlighted that the US July Consumer Price Index (CPI) report due on Wednesday, followed by the Producer Price Index (PPI) data on Thursday, will offer fresh insights into the Federal Reserve's monetary policy outlook, while these economic indicators will be crucial in determining whether the current rally in gold and silver prices will continue or stabilize in the near future.