Gold Price Today / Gold prices did not increase without reason, depreciation of rupee has a big role to play

After falling for five consecutive days, gold prices in Delhi on Wednesday rose by Rs 700 to Rs 98,520 per 10 grams. The main reason for this increase was the fall of 52 paise in the rupee against the dollar. Silver also rose by Rs 1,000 to Rs 1,14,000 per kg.

Gold Price Today: On Wednesday, the price of gold in the bullion market of the country's capital Delhi witnessed a significant increase, which broke the trend of decline for the last five trading sessions. According to experts, the main reason for this rise is the sharp fall in the Indian rupee against the dollar. The rupee closed at 87.43 (provisional) with a weakness of 52 paise, which played an important role in increasing the prices of gold and silver in the local market.

Increase in gold and silver prices

According to the All India Sarafa Association, the price of gold of 99.9 percent purity in Delhi rose by Rs 700 per 10 grams to Rs 98,520. On Tuesday, it closed at Rs 97,820 per 10 grams. Similarly, the price of gold of 99.5 percent purity increased by Rs 650 to Rs 98,200 per 10 grams (including all taxes), which was Rs 97,550 in the previous session.

Silver prices also witnessed a rise. Silver rose by Rs 1,000 per kg to Rs 1,14,000 (including all taxes) on Wednesday, which was stable at Rs 1,13,000 on Tuesday. In the global market, spot gold remained stable at $ 3,330.33 an ounce, while spot silver was trading marginally lower at $ 38.09 an ounce.

Rupee weakness and global uncertainty

Saumil Gandhi, Senior Analyst (Commodity), HDFC Securities, said that due to the sharp fall in the rupee, gold prices saw a good rise in the local market. The surge in crude oil prices and uncertainty over the India-US trade deal increased the pressure on the rupee. US President Donald Trump's indication of 20-25 percent duty rates before August 1 further deepened this uncertainty.

Expert opinion

Kotak Securities AVP (Commodity Research) Kaynat Chainwala said that investors are waiting for key US economic data, including second quarter GDP data, ADP employment, pending home sales and the Federal Open Market Committee (FOMC) interest rate decision. He informed that the Federal Reserve is expected to keep interest rates unchanged, but the market is closely monitoring guidance on the policy outlook.

Abans Financial Services CEO Chintan Mehta said that investors will also keep an eye on the comments of US Federal Reserve Chairman Jerome Powell, which may indicate future policy stance. GDP figures will further clarify the state of the US economy, which may affect the decisions of the Federal Reserve.