Silver Jumps ₹10,000 as Weak Dollar Supports Precious Metals
Key Highlights
- Gold prices in Delhi jumped ₹4,300 to ₹1,62,300 per 10 grams.
- The yellow metal reached its highest level in around three months.
- Gold had closed at ₹1,58,000 per 10 grams in the previous session.
- Silver surged ₹10,000 to ₹2,45,000 per kilogram.
- Silver reached its highest level in around seven weeks.
- A weaker US dollar and lower Treasury yields supported demand for precious metals.
- The dollar index slipped to a three-month low.
- Domestic bullion prices rallied even as gold and silver declined in overseas markets.
- International gold fell to around $4,456.72 per ounce, while silver declined to $65.82 per ounce.
- Analysts said changes in the US bond market also contributed to support for gold.
Gold prices staged a sharp rally in the national capital on Thursday, climbing ₹4,300 to a three-month high of ₹1,62,300 per 10 grams as a weaker US dollar and declining US Treasury yields increased the appeal of precious metals.
Silver also recorded a substantial gain, jumping ₹10,000 to ₹2,45,000 per kilogram and reaching its highest level in around seven weeks.
The rally came as investors tracked movements in the dollar and US bond yields, two important factors influencing global precious-metal prices.
Gold jumps ₹4,300 in Delhi
Gold of 99.9 per cent purity rose ₹4,300 to ₹1,62,300 per 10 grams, inclusive of taxes, according to local traders.
The precious metal had closed at ₹1,58,000 per 10 grams on Wednesday.
The latest price puts gold near levels last recorded on May 26, when it was quoted at ₹1,62,400 per 10 grams.
The sharp single-session increase brought domestic bullion prices back towards their recent highs.
Silver surges ₹10,000
Silver mirrored gold’s strength and recorded an even larger absolute increase.
The white metal climbed ₹10,000 to ₹2,45,000 per kilogram, inclusive of taxes, from ₹2,35,000 per kilogram in the previous session.
The latest level represents a roughly seven-week high.
Silver was last around ₹2,45,000 per kilogram on July 3.
The simultaneous rise in gold and silver reflected strong domestic momentum across precious metals during Thursday’s trading.
Weak dollar supports bullion
Analysts attributed much of the strength in gold to weakness in the US dollar and declining Treasury yields.
The dollar index fell to a three-month low, making dollar-denominated precious metals relatively more attractive to holders of other currencies.
Lower bond yields can also benefit gold because the metal does not generate interest. When yields decline, the opportunity cost associated with holding non-yielding assets such as gold becomes comparatively lower.
Saumil Gandhi, Senior Analyst-Commodities at HDFC Securities, said gold remained near its highest level in more than two months as the decline in the dollar and Treasury yields provided support.
Domestic rally contrasts with overseas decline
The sharp increase in domestic bullion prices came despite weakness in international markets.
Gold declined $66.31, or 1.47 per cent, to $4,456.72 per ounce in overseas trade.
Silver fell nearly 2 per cent to $65.82 per ounce.
Spot gold was subsequently trading around $4,450 per ounce, highlighting the divergence between the strong domestic price movement and weakness seen in global spot bullion during the session.
Oil and geopolitical developments weigh overseas
Crude oil prices rose more than 2 per cent after US President Donald Trump announced new economic sanctions on Iran, according to Praveen Singh, Head of Commodities at Mirae Asset ShareKhan.
The rise in crude prices contributed to volatility across global markets.
Gold nevertheless remained close to its highest levels since early June, supported by movements in US bond yields and the dollar.
US Treasury move draws investor attention
Developments in the US Treasury market also attracted investor attention.
The US Treasury Department said it would at least double the buyback amount for off-the-run securities during the current August quarter, increasing it from $2 billion to $4 billion.
Market participants viewed the move as an indication that authorities were closely monitoring conditions in the bond market.
Gaurav Garg, Head of Research at Lemonn Markets Desk, said lower Treasury yields and the weaker dollar were helping gold remain near its highest level since early June.
Dollar and yields remain key triggers
Precious metals are likely to remain sensitive to movements in the US dollar, Treasury yields, geopolitical developments and broader expectations around global monetary conditions.
A sustained decline in yields or further weakness in the dollar could continue to provide support to bullion, while renewed strength in either could create pressure.
For Indian buyers, Thursday’s sharp rally pushed both major precious metals back towards recent highs, with gold reaching ₹1.62 lakh per 10 grams and silver touching ₹2.45 lakh per kilogram.
