Gold Jumps ₹1,200 To ₹1,63,500, Silver Surges ₹5,000 To ₹2.50 Lakh

Mumbai: Gold and silver prices climbed to more than three-month highs in the national capital on Friday, extending gains for the second straight session as a weaker US dollar and overseas markets increased demand for precious metals.

Gold rises Rs 1,200

Gold of 99.9 percent purity jumped Rs 1,200 to Rs 1,63,500 per 10 grams, including taxes, according to traders. It had closed at Rs 1,62,300 on Thursday.

The metal was last near this level on May 19, when it traded at Rs 1,63,600 per 10 grams.

Silver jumps Rs 5,000

Silver surged Rs 5,000 to Rs 2,50,000 per kilogram, its highest level in 15 weeks. It had settled at Rs 2,45,000 on Thursday.

The white metal has gained Rs 15,000 over the last two sessions. It was last near this level on May 4, when it stood at Rs 2,49,500 per kilogram.

Global prices rally

In international markets, spot gold rose USD 81.58, or 2 percent, to USD 4,600.91 per ounce. It touched its highest level since May 18 and remained on course for a third weekly gain.

Spot silver climbed nearly 3 percent to USD 69.87 per ounce.

Experts said a weaker dollar and falling longer-term US Treasury bond yields supported bullion prices. Investment demand and movements in currency and bond markets also helped gold and silver.

What is driving bullion?

Gold has gained more than 4 percent this week after the US Treasury expanded its bond-buying programme and doubled long-term debt buybacks to control borrowing costs.

The move pushed the dollar and bond yields lower, giving support to bullion. Yields later stabilised as investors questioned whether the Treasury measures could provide lasting relief.

A decline in global oil prices also supported precious metals. Geopolitical worries increased after the Trump administration said it would announce its toughest economic sanctions against Iran.

Iran dismissed the move and criticised the United States over its rising debt and record interest payments.

Investors are now waiting for US S&P purchasing managers’ index data for signals about the Federal Reserve’s interest-rate policy.