Gold edged higher at the start of the week, with bullion drawing strength from fresh geopolitical unease and lingering worries about where global inflation is headed. Rising tensions in the Middle East pushed crude oil prices up, and because costlier energy usually filters into broader price pressures, investors turned once again to the yellow metal as a store of value.
Adding to the caution was a set of remarks from a U.S. Federal Reserve policymaker hinting that the central bank may not yet be done lifting interest rates. That mix, firmer oil alongside the prospect of borrowing costs staying higher for longer, kept traders on edge and put a floor under precious metals.
Why crude and rate signals matter for gold
Higher oil prices have a way of stoking inflation, since energy costs ripple through nearly every corner of the economy. Meanwhile, the belief that interest rates could stay elevated for an extended stretch tends to weigh on sentiment across global financial markets. Gold is traditionally viewed as a shield against inflation, which explains much of its current appeal. There is a catch, though: because the metal pays no interest, a world of higher rates raises the cost of holding it, and that can limit how far prices run.
24 Karat gold
The purest grade, 24 Karat gold, rose Rs 17 on Monday to reach Rs 14,346 per gram. On that basis, 8 grams became dearer by Rs 136 at Rs 1,14,768, while 10 grams advanced Rs 170 to Rs 1,43,460. For those buying in bulk, 100 grams of 24K gold gained Rs 1,700 to settle at Rs 14,34,600.
22 Karat gold
The 22 Karat variety, the grade most widely used in jewellery, also firmed up, adding Rs 15 to trade at Rs 13,150 per gram. For 8 grams, the outgo rose Rs 120 to Rs 1,05,200, and 10 grams moved up Rs 150 to Rs 1,31,500. A 100 gram purchase of 22K gold was quoted at Rs 13,15,000, higher by Rs 1,500 than the previous session.
18 Karat gold
Even the lower-purity 18 Karat gold posted a gain, rising a modest Rs 12 to Rs 10,759 per gram. In turn, 8 grams cost Rs 96 more at Rs 86,072, while 10 grams climbed Rs 120 to Rs 1,07,590. The 100 gram rate for 18K gold rose Rs 1,200 to Rs 10,75,900.
Silver holds steady
Unlike gold, silver stayed flat, quoted at Rs 235 per gram and Rs 2,35,000 per kilogram, with no change from its earlier level.
What buyers are paying across cities
Rates shift a little from one city to the next because of local taxes and transport costs. In Chennai, 24K gold was priced at Rs 14,346 per gram and 22K at Rs 13,150 per gram, while 18K gold stood higher than in most cities at Rs 10,965 per gram.
Mumbai buyers paid Rs 14,346 per gram for 24K gold, Rs 13,150 for 22K and Rs 10,759 for 18K. The same three figures, Rs 14,346, Rs 13,150 and Rs 10,759, applied in Kolkata, Bangalore, Hyderabad and Pune, keeping those cities in lockstep.
The national capital, Delhi, carried marginally steeper tags, with 24K gold at Rs 14,361 per gram, 22K at Rs 13,165 and 18K at Rs 10,774. Jaipur matched Delhi exactly, quoting the same Rs 14,361, Rs 13,165 and Rs 10,774. In Ahmedabad, prices sat just above the pan-Indian norm at Rs 14,351 for 24K, Rs 13,155 for 22K and Rs 10,764 for 18K.
The view from the bullion desk
Softer U.S. inflation figures trimmed the chances of a July rate increase, though Fed Chair Kevin Warsh stuck to his tough line on inflation, and markets are now pricing a 73% probability of a hike in December. On the technical picture, "gold's next move hinges on the Iran situation, while silver has broken key support and is eyeing $50-51 next," said Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd.
