NEW DELHI, Aug. 12: Gold prices continued their upward run in the national capital on Tuesday, advancing for a sixth consecutive trading session as stronger investment demand and safe haven buying lifted the precious metal to a two-month high.
According to the All India Sarafa Association, 99.9 per cent purity gold rose ₹1,200 to ₹1,57,200 per 10 grams, including taxes, from Monday’s closing price of ₹1,56,000.
The metal was last quoted around this level on June 12, when it stood at ₹1,56,900 per 10 grams.
The latest gain takes gold’s increase over the past six trading sessions to ₹9,800, or 6.65 per cent. The precious metal had been trading at ₹1,47,400 per 10 grams on August 3.
Silver prices also advanced sharply, climbing ₹2,000 to ₹2,42,000 per kilogram, inclusive of taxes. The white metal reached its highest level in more than two months and was last near this mark on April 30, when it was quoted at ₹2,42,700 per kg.
Market analysts attributed the strength in bullion to increased investor interest ahead of crucial US inflation data, which could provide fresh indications about the Federal Reserve’s approach to interest rates.
Gaurav Garg, Head of Research at Lemonn Markets Desk, said gold’s rally was supported by safe-haven demand, while silver benefited from industrial consumption as well as positive investor sentiment.
In international markets, spot gold was trading 0.38 per cent lower at $4,373.43 an ounce, while silver declined nearly 1.3 per cent to $64.90 an ounce.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said gold’s initial attempt to extend gains in overseas markets lost momentum after crude oil prices moved higher.
Spot gold had climbed to around $4,435 an ounce before retreating. Rising oil prices amid continued uncertainty surrounding the Strait of Hormuz added to market volatility.
Investors are now closely watching upcoming US economic data for indications about the Federal Reserve’s monetary policy. The US Consumer Price Index for July is scheduled for release on Wednesday, followed by producer price data on Thursday.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said the inflation figures could provide important signals for bullion traders assessing the future direction of US interest rates.
With domestic gold prices already posting a strong six-session rally, market participants are expected to closely track global bullion movements, currency trends and fresh economic indicators for further direction.