New Delhi, Aug 12 (PTI) Gold’s winning streak stretched to a seventh consecutive session, with prices jumping Rs 2,600 to Rs 1.59 lakh per 10 grams in the national capital on Wednesday, as firm global demand and strong investment appetite lifted the precious metal.
The yellow metal of 99.9 per cent purity appreciated Rs 2,600 to Rs 1,59,800 per 10 grams (inclusive of all taxes) from Tuesday’s closing level of Rs 1,57,200, according to the All India Sarafa Association.
The latest rally has elevated gold prices by Rs 12,400, or 8.4 per cent, from Rs 1,47,400 per 10 grams on August 3.
Silver, too, is catching the bullion wave, surging Rs 4,000 to Rs 2,46,000 per kilogram (inclusive of all taxes) from Rs 2,42,000 per kg in the preceding session, as the white metal joined gold in the latest price surge.
Gold rose in the domestic markets as investors increased safe-haven buying ahead of the US inflation data, while persistent geopolitical tensions in West Asia supported demand for precious metals, Gaurav Garg, Head of Research at Lemonn Markets Desk.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said a pullback in US Treasury bond yields and a steady dollar also provided support for precious metals.
In the global markets, spot gold gained USD 44.48, or 1.02 per cent, to USD 4,412.63 per ounce, while silver was trading 2.37 per cent higher at USD 66.23 per ounce.
Analysts said gold’s rally found fresh fuel as US inflation numbers came in broadly as expected, with prices rising more than 1 per cent to trade above USD 4,411 per ounce in the international markets.
US consumer price growth eased marginally to 3.4 per cent in July from 3.5 per cent in June, matching projections of the investors and leaving the Federal Reserve with little room to take its foot off the monetary policy brake, they added.
For bullion traders, the inflation picture remains finely balanced. Higher energy prices could keep interest rates elevated for longer, increasing the cost of assets such as gold, as per analysts.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said gold is also finding support from recovering exchange-traded fund holdings, which have risen to 97.24 million ounce (Moz), their highest since June 24 and more than 1 million ounces above the cycle low of 96.16 Moz.
Meanwhile, crude oil prices remained flat as a US-Iran deal remained elusive, although regional mediators said the two sides were close to an agreement.
Silver’s appeal, however, stretches beyond the immediate geopolitical backdrop.
On the outlook, Citi Research has retained its silver price forecast, with the metal expected to climb as much as USD 90 per ounce over the next six to twelve months.
Investment flows are expected to remain the dominant driver of silver prices, even as solar demand faces a structural slowdown due to thrifting and adoption of back-contact technology, Citi said.
Citi Research expects silver to track gold’s direction with higher volatility, making it an attractive upside play if the Strait of Hormuz situation is resolved quickly.
India is providing another source of support, with strong demand reflected in a roughly 7 per cent domestic premium. Buying is expected to strengthen in the fourth quarter during the festive and wedding season.
The global financial services firm expects the global silver market to remain in deficit through 2027, supported by resilient demand from artificial intelligence, 5G and electric vehicles. PTI HG ANU SHM
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