Indian gold prices dipped slightly this week but held onto their upward momentum, thanks to lingering doubts about the US Federal Reserve’s next moves. Traders in New Delhi watched closely as uncertainty kept the yellow metal in demand as a safe-haven asset.
According to the India Bullion and Jewellers Association (IBJA), 24-carat gold for 10 grams kicked off the week at Rs 1,13,498 on Monday. It climbed to a peak of Rs 1,14,044 on Tuesday before closing Friday at Rs 1,13,260. Global trade tensions, a weakening Indian rupee, steady buying from central banks, and questions over the Fed’s policy path all boosted gold’s appeal.
Silver drew strong interest too, fueled by solid industrial demand and tight supplies. IBJA data shows silver ended the week at Rs 1,37,467 per kilogram on Friday.
Jateen Trivedi, vice president of research for commodities and currency at LKP Securities, noted that gold traded around Rs 1,14,000, up Rs 130. “Comex gold stayed steady, the dollar edged higher, and the rupee hovered near 88.71,” he said. Stronger-than-expected US GDP figures sparked some profit-taking on Thursday, but gold bounced back fast. Trivedi sees the overall trend staying positive, with support at Rs 1,12,500 and resistance at Rs 1,15,000. He expects gold prices in India to range between Rs 1,07,500 and Rs 1,11,000 in the near term.
Gold has beaten Indian stocks for the fourth straight Diwali-to-Diwali period, extending a streak where it outperformed equities in seven of the past eight years. Silver has topped stocks for three years running, driven by growing needs in solar panels, semiconductors, and electric vehicles.
Analysts point to robust central bank purchases and steady flows into gold ETFs as key supports for bullion prices. However, the Fed chair’s careful comments on inflation, the job market, and potential rate cuts might limit how high prices can climb.
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