Gold and silver prices in the national capital experienced a sharp rally on Wednesday, August 5, as reviving demand in overseas markets drove domestic bullion rates to their highest levels in nearly a month. In the Delhi bullion market, 99.9% purity gold jumped by Rs 2,500, or 1.7%, to reach Rs 1,50,000 per 10 grams, inclusive of all taxes. Concurrently, silver registered a massive single-day surge of Rs 6,200 per kg, elevating the white metal to Rs 2,32,700 per kg.
Detailed Price Breakup in the National Capital
According to data from the All India Sarafa Association, Wednesday marked the second consecutive day of gains for gold in Delhi. On Tuesday, gold had settled at Rs 1,47,500 per 10 grams. The single-day escalation of Rs 2,500 propelled gold prices back to levels last witnessed on July 6, when the metal closed at Rs 1,50,650 per 10 grams. Market participants noted that strong international cues provided momentum to domestic bullion traders.
Silver also witnessed strong buying momentum after holding steady during the previous trading session at Rs 2,26,500 per kg. The Rs 6,200 jump brought silver to Rs 2,32,700 per kg (all taxes included), its highest trading level in approximately four weeks. Silver had last traded near this peak on July 9, closing at Rs 2,32,000 per kg.
Global Factors and Expert Insights
In international markets, spot gold advanced by $85.28, or 2.09%, to trade at $4,162.76 per ounce. Spot silver also recorded gains exceeding 3%, moving up to $61.35 per ounce. Analysts attributed the global strength to macroeconomic indicators and geopolitical developments in the Middle East.
Saumil Gandhi, Senior Commodity Analyst at HDFC Securities, highlighted that "growing optimism over potential US-Iran negotiations to reopen the Strait of Hormuz helped relieve immediate international market anxieties." Additionally, expectations that the US Federal Reserve will refrain from further monetary policy tightening encouraged investors to allocate capital into precious metals.
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, noted that fluctuating crude oil prices played a key role. Lower oil prices initially eased inflation concerns regarding Federal Reserve rate hikes. However, threats by Yemen's Houthi rebels against Saudi oil tankers in the northern Red Sea halted the drop in oil prices, prompting a rebound that further supported gold demand. Looking ahead, Jatin Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities, indicated that upcoming macroeconomic data releases will guide the next major trend in bullion prices.
