New Delhi: Gold prices jumped by ₹3,000 to ₹1,30,900 per 10 grams in the national capital on Thursday, buoyed by firm global trends and a weaker dollar, according to the All India Sarafa Association.
Traders said the conclusion of the US government shutdown also boosted demand for the safe-haven metal.
Gold of 99.5% purity rose for the third straight session, climbing ₹3,000 to ₹1,30,300 per 10 grams (inclusive of taxes), compared to Wednesday’s close of ₹1,27,300. In the local bullion market, 99.9% pure gold had previously settled at ₹1,27,900 per 10 grams.
Silver prices also surged, soaring ₹7,700 to ₹1,69,000 per kg (inclusive of taxes), after rising ₹5,540 to ₹1,61,300 per kg on Wednesday.
The dollar index slipped 0.20% to 99.30 after the Trump administration passed a bill to end the 43-day government shutdown, supporting bullion sentiment.
Globally, spot gold climbed USD 41.19 (0.98%) to USD 4,236.84 an ounce.
“Bullion extended its rally on Thursday on the back of a softer dollar and rising expectations of further rate cuts following weak US macroeconomic data,” said Saumil Gandhi, Senior Analyst – Commodities, HDFC Securities. He added that the Federal Reserve may infuse additional liquidity to offset the partial drain caused by the shutdown, further aiding precious metals.
Spot silver rose 1.13% to USD 53.86 per ounce. Gandhi noted that silver has gained over 10% this week due to expectations of rate cuts, supply concerns, strong industrial and investment demand, and positive technical cues.
The US Department of the Interior has also added silver to its list of “critical minerals,” underscoring its economic and strategic significance.
“The market is now awaiting a raft of official data following the end of the shutdown, which will reduce reliance on private estimates and provide clearer insight into the health of the US economy and future rate decisions,” Gandhi added.
Sandip Raichura, CEO – Retail Broking & Distribution and Director at PL Capital, said easing global tensions and potential friction as the US negotiates with India and other major economies may create headwinds that could cap further bullion price gains.
