A sharp retreat in the US dollar helped restore investor appetite across precious metals, triggering a solid rebound in bullion prices at the close of the trading week. In Delhi's physical bullion market, silver registered a single-day climb of Rs 4,500, while gold advanced by Rs 1,900 on Friday. This marked the second straight winning session for the yellow metal before trading paused for the weekend, as physical bullion counters traditionally stay closed on Saturday and Sunday.
Two-Day Advance Propels Gold by Rs 5,500
Data released by the All India Sarafa Association confirmed that 99.9 percent purity gold in Delhi climbed by Rs 1,900 to settle at Rs 1,54,400 per 10 grams on Friday. That follow-through buying built directly upon Thursday's performance, when prices surged by Rs 3,600 to finish at Rs 1,52,500 per 10 grams. Driven by steady institutional and spot demand over just two sessions, the cumulative rise in domestic gold rates stood at Rs 5,500.
Silver Halts Slide to Recover Rs 4,500 in Friday Trade
The persistent slide in silver also came to an abrupt halt, as spot prices rallied by Rs 4,500 to reach Rs 2,28,500 per kilogram, inclusive of applicable taxes. The metal had faced considerable headwinds earlier in the week, shedding Rs 3,000 on Thursday to touch Rs 2.24 lakh per kilogram. Before that sharp Thursday dip, silver trading had remained flat across the first three sessions of the week.
Retreating US Dollar and Currency Factors Drive the Move
Explaining the market dynamics, Gaurav Garg, head of research at brokerage platform Lemon, noted that the pullback in the US dollar from recent peaks provided vital underlying support to precious metals, lifting gold higher even amid ongoing inflation concerns. Garg explained that the broader turnaround in the precious metals basket benefited silver as well, while persistent weakness in the Indian rupee elevated the domestic cost of imported commodities. Across the final two trading sessions of a volatile week, domestic gold appreciated by Rs 4,600 or 3.07 percent, while silver marked a net gain of Rs 1,500 or roughly one percent.
Overseas Spot Rates Mirror the Bullion Rebound
The upward price momentum was equally evident on global trading desks. In international trade, spot gold climbed by 48.35 dollars or 1.17 percent to touch 4,181.98 dollars per ounce. Silver staged an even sharper technical rebound overseas, rising two percent to reach 60.32 dollars per ounce after having slipped to a three-month low earlier in the week.
Crude Oil Spikes Remain a Downside Risk Factor
Praveen Singh, commodity head at Mirae Asset Sharekhan, pointed out that weakness in both the US dollar index and crude oil benchmarks allowed global spot gold to trade over one percent higher, hovering around 4,180 dollars per ounce. Looking ahead, Singh expects gold prices to trade within a relatively contained range while maintaining a mild upward bias. However, he cautioned that any sudden escalation in crude oil prices could alter market dynamics and exert fresh downside pressure on bullion valuations.
