Gold prices surge due to increased demand from jewellers
Gold prices in India saw a significant increase on Thursday, rising by Rs 50 to Rs 75,100 per 10 grams in the national capital. This surge was driven by robust buying from jewellers and a strong trend in the international markets. The All India Sarafa Association reported that the precious metal had settled at Rs 75,050 per 10 grams on Wednesday.
Increased demand from local jewellers and a positive trend in overseas markets were cited as the main factors driving the rally in gold prices. Additionally, in global markets, spot gold was trading higher at USD 2,389.20 per ounce, up by USD 9.50 per ounce.
Insight: Investors’ interest in gold has been further fueled by the uncertainty surrounding the US Federal Reserve’s interest rate decisions, with a focus on upcoming inflation data.
Silver prices also on the rise
Alongside gold, silver prices also climbed on Thursday, increasing by Rs 100 to Rs 94,500 per kg. The previous session had seen silver close at Rs 94,400 per kg. Market experts point to a positive outlook for silver, with the precious metal also marginally up at USD 31.32 an ounce in New York.
Insight: The strength in silver prices reinforces the overall bullish sentiment in the precious metals market, reflecting investors’ interest in safe-haven assets.
Central banks continue to hoard gold
Market experts suggest that gold prices continued to rise on Thursday as data indicated that central banks globally are still hoarding gold, despite reports that the People’s Bank of China had stopped buying the metal for two months in June. This ongoing interest from central banks adds to the overall demand for gold and supports the upward trajectory in prices.
Insight: The continued interest from central banks in acquiring gold underscores the metal’s status as a reliable store of value and a safe-haven asset during times of economic uncertainty.
In conclusion, the surge in gold and silver prices on Thursday reflects a combination of factors, including increased demand from jewellers, a strong international market trend, and ongoing interest from central banks. Investors continue to closely monitor economic data and central bank policies to gauge the future trajectory of precious metal prices.
