It was a rewarding week for the bullion market. Pressure on the dollar index and rising hopes of cooling global inflation lifted both gold and silver to fresh peaks. Backed by strong buying, gold turned costlier by nearly ₹6,500 this week while silver gained more than ₹17,000. The strength was not limited to the domestic market, as both precious metals rose in the global market too. Internationally, gold is trading near $4,170 per ounce and silver around $62 per ounce.
Gold Leaps ₹6,471 in a Week
Fresh figures from the India Bullion Jewellers Association (IBJA) show that 24 carat gold jumped ₹6,471 this week to reach ₹1,46,344 per 10 grams, up from ₹1,39,873 earlier. The price of 22 carat gold also rose to ₹1,34,051 per 10 grams from ₹1,28,124, while 18 carat gold is now selling at ₹1,09,758 per 10 grams against last week's ₹1,04,905.
Weekly High Touched on July 3 Evening
Looking at the week's swings, gold recorded its lowest level of ₹1,39,434 on the morning of July 1. From there it kept climbing and touched its highest level of ₹1,46,344 on the evening of July 3.
Silver Prints an All-Time High
Silver mirrored gold with a sharp rally of its own this week. Its price surged ₹17,317 to hit an all-time high of ₹2,33,858 per kilogram, up from ₹2,16,541 earlier. Silver's lowest level of the week was ₹2,21,355 on July 1, and it built its peak of ₹2,33,858 during the evening session of July 3.
Two Big Reasons Behind the Rally
According to market experts, this recent surge rests on two main global factors. The first is the softness in crude oil prices in the international market, which has raised hopes of easing inflation worldwide. The second is the steady decline in the dollar index over the last two trading sessions, which has lent firm support to precious metals.
What Lies Ahead
Experts believe that as long as the dollar index stays under pressure and stability does not return on the geopolitical or macroeconomic front, this uptrend in gold and silver could continue. In the coming days, if the dollar weakens further, prices of gold and silver in the domestic market may hold on to their strength.
