NEW DELHI, August 18: Gold prices saw a significant increase in the national capital on Tuesday, climbing by Rs 2,000 to reach Rs 1.58 lakh per 10 grams. This marks a continuation of the upward trend observed for the second consecutive session, driven by increased purchasing activity from retailers and stockists.
Information was available with The Chenab Times indicating that gold of 99.9 per cent purity appreciated by Rs 2,000, settling at Rs 1,58,800 per 10 grams, inclusive of all taxes. This is a notable jump from its closing price of Rs 1,56,800 per 10 grams on Monday.
The momentum extended to silver as well, with prices advancing by Rs 730 to Rs 2,40,730 per kilogram, also inclusive of all taxes. This rise follows a period where silver had remained flat at Rs 2,40,000 per kilogram for two trading sessions, as per data from the All India Sarafa Association.
On the international front, spot gold experienced a minor dip of 0.5 per cent, trading at USD 4,394.57 per ounce. Similarly, silver saw a decrease of over 1 per cent, quoted at USD 65.08 per ounce. These global price movements occurred despite domestic gains.
Analysts attribute the recent fluctuations in gold prices to a complex interplay of factors. Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, noted that crude oil’s rebound, influenced by supply concerns in West Asia, provided some support. Oil prices gained traction as the 60-day US-Iran ceasefire expired, with neither side showing immediate willingness to extend it.
Singh further explained that geopolitical tensions, including statements from US President Donald Trump indicating Washington’s strategic advantage over Tehran amidst a continued naval blockade, contributed to market sentiment. Iran’s directive for its military to maintain a steady posture added to the cautious atmosphere.
However, the broader investment landscape continues to offer a degree of stability for precious metals. Praveen Singh highlighted that total known gold-backed exchange-traded fund holdings saw another increase on Monday, reaching 97.39 million ounces, suggesting sustained investor interest.
Kaynat Chainwala, AVP Commodity Research at Kotak Securities, observed that spot silver eased slightly towards USD 65 per ounce. This softening was reportedly influenced by firm US Treasury yields and some profit-taking by investors.
Despite the near-term pullback in silver, Chainwala maintained a constructive outlook for the broader bullion market. The sector is expected to benefit from softer Federal Reserve rate expectations, consistent buying from central banks, particularly China, and steady investment demand.
Market participants are now keenly awaiting the minutes from the Federal Open Market Committee’s July meeting. These minutes are anticipated to provide fresh insights into the future direction of US monetary policy, which could significantly influence gold and silver prices.
Chainwala cautioned that with the Federal Reserve’s policy path yet to be definitively clarified, particularly in the lead-up to the Jackson Hole Symposium, gold and silver may continue to experience two-way volatility in the immediate future.
The Chenab Times News Desk