Gold Prices Climb
Gold futures rise to ₹1.50 lakh amid a weaker rupee and softer U.S. inflation data.
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Key Points
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The rupee closed at ₹96.31 per US dollar, its weakest closing level in more than two months; the depreciation supported domestic gold because India imports most of its supply.
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Higher oil prices and continued uncertainty surrounding the Strait of Hormuz limited gold’s international gains, according to commodity analyst Praveen Singh of Mirae Asset Sharekhan.
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India’s bullion markets were scheduled to remain shut on Friday for Gandhi Jayanti.
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Global spot gold began October higher after falling more than 6% in September. Platinum and palladium also gained on Thursday, rising 0.7% to $1,717.35 and 0.3% to $1,207.12 per ounce, respectively.
Gold futures in India jumped 0.99% to ₹1,50,511 per 10 grams on Thursday, with retail gold rising ₹500 to ₹1,49,800 per 10 grams ibtimes. A weaker rupee and soft U.S. inflation data fueled the rally, though international gains were capped by higher oil prices and geopolitical uncertainty.
Globally, spot gold climbed around 0.3% to roughly $4,169 per ounce usatoday, bouncing back after a steep 6% September decline. But Indian gold lost about 2% for the week, and silver diverged sharply — domestic retail silver fell ₹5,000 to ₹2,27,000 per kilogram while international silver rose thehindubusinessline.
Rupee Weakness Supports Domestic Gold Prices
The Indian rupee hit its weakest closing level in over two months at ₹96.31 per U.S. dollar ibtimes. Since India imports most of its gold, a weaker rupee makes the metal cheaper for domestic buyers and boosts local demand. This currency headwind was the main driver of Thursday's gains in rupee terms.
U.S. Inflation Data Eases Gold Selling Pressure
Softer-than-expected U.S. inflation figures provided relief for gold investors dailypioneer. Lower inflation readings typically reduce expectations for further interest rate hikes, making zero-yield gold more attractive. Fresh futures buying also supported prices as traders positioned ahead of October trading.
Oil Prices and Strait Tensions Cap International Gains
Higher crude oil prices and ongoing concerns about the Strait of Hormuz have limited gold's international rally thehindubusinessline. According to commodity analyst Praveen Singh of Mirae Asset Sharekhan, geopolitical uncertainty and energy market volatility are weighing on global precious metals. This kept spot gold gains modest despite the positive rupee tailwind for Indian buyers.
Silver Weakness Contrasts With Platinum Rally
Silver showed sharp divergence across markets etvbharat. Domestic retail silver tumbled ₹5,000 to ₹2,27,000 per kilogram and fell 4.2% for the week. But platinum rose 0.7% to $1,717.35 per ounce globally, and palladium climbed 0.3% to $1,207.12. India's bullion markets remain shut Friday for Gandhi Jayanti, pausing trading momentum.
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