New Delhi: Precious metals witnessed a massive rebound on Monday as gold prices jumped by ₹2,440 to reach ₹1,49,640 per 10 grams. Similarly, silver prices climbed by ₹5,300, reaching ₹2,30,000 per kg in the national capital. This sharp recovery follows two consecutive sessions of losses, driven by robust cues from international markets.

According to the All India Sarafa Association, 99.9% pure gold traded at ₹1,49,640 per 10 grams, inclusive of all taxes. In the previous session, the metal was trading at ₹1,47,200. Silver also saw a significant uptick from its Friday closing level of ₹2,24,700 per kg.

Why This Matters

BozokMedia analysis shows that the rally is primarily driven by a retreat in crude oil prices, which has eased global inflation concerns. As tensions in West Asia showed signs of cooling, investor sentiment shifted toward safe-haven assets. Furthermore, a weaker US dollar and lower Treasury bond yields have provided additional momentum to the bullion market.

Easing tensions in West Asia triggered a sharp decline in crude oil prices, providing relief to the bullion market.

While the global market saw spot gold rise to USD 4,095.30 per ounce, domestic gains were somewhat capped by the strengthening of the Indian rupee against the US dollar. Analysts suggest that upcoming GDP data and monetary policy decisions from the Federal Reserve will play a crucial role in determining the next direction of prices.

Historical Background

Gold has traditionally served as a hedge against inflation and currency devaluation. During periods of geopolitical volatility or shifts in monetary policy, central banks and private investors alike tend to increase their gold reserves to safeguard wealth.

Frequently Asked Questions

1. What caused the sudden rise in gold prices?
The rise was caused by falling crude oil prices, easing inflation fears, and a weaker US dollar.

2. How much did silver prices increase?
Silver prices increased by ₹5,300 per kg to reach the ₹2,30,000 mark.