Gold and Silver Prices Surge Amid Geopolitical Tensions and Fed Rate Cut Expectations

Gold and silver prices surged in the national capital due to higher domestic demand, geopolitical tensions, and expectations of a Fed rate cut. Gold rallied by Rs 550 to Rs 72,500 per 10 grams, while silver jumped by Rs 600 to Rs 86,200 per kg. Market experts predict further price increases.

Gold prices soared by Rs 550 to Rs 72,500 per 10 grams in the national capital on Thursday, propelled by increased domestic demand and favorable global trends. This rise marks the third consecutive day of price hikes, recovering from earlier losses caused by a government customs duty cut on gold and silver.

Similarly, silver prices leapt Rs 600 to Rs 86,200 per kg from Rs 85,600 per kg in the previous session, as per the All India Sarafa Association. Gold of 99.5 percent purity also increased by Rs 550 to Rs 72,150 per 10 grams.

Market analysts attribute the surge to the risk of further geopolitical tensions in the Middle East, which has driven up demand for safe-haven commodities. Additionally, global Comex gold traded higher at USD 2,490 per ounce. Experts predict an upward trend as US Federal Reserve's Chair hinted at a potential rate cut in September, pushing yields lower and bolstering gold prices.

(With inputs from agencies.)