Now Reading: Gold extends rally to Rs 1.56 lakh on rupee weakness
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Gold extends rally to Rs 1.56 lakh on rupee weakness
Gold prices rose for a fifth consecutive session in Delhi on Monday, climbing Rs 2,000 to Rs 1.56 lakh per 10 grams, driven by a depreciating rupee. The All India Sarafa Association…
The Story in Brief
Gold prices rose for a fifth consecutive session in Delhi on Monday, climbing Rs 2,000 to Rs 1.56 lakh per 10 grams, driven by a depreciating rupee. The All India Sarafa Association reported silver surged Rs 5,200 to Rs 2,40,000 per kg. Internationally, spot gold edged lower to $4,335 per ounce as investors booked profits ahead of key US inflation data. Traders said a weaker rupee makes imported bullion more expensive. Analysts noted bullion support from expectations of a less aggressive Federal Reserve and lingering West Asia tensions, though elevated oil prices could cap gains.
By Tuesday, gold touched a 10-week high of Rs 1.57 lakh per 10 grams in Delhi, gaining 6.65% over six sessions. The biggest market trigger on Wednesday will be US CPI data, which could influence Federal Reserve rate decisions. Traders have cut September rate hike probability to 48% after weaker-than-expected jobs data, but Fed officials remain divided.
The Indian Opinion
Gold's relentless rise has produced breathless headlines that treat a depreciating rupee and global uncertainty as surefire triggers. They ignore the simple arithmetic: a weaker rupee inflates import costs, and oil above $100 a barrel could force the RBI to tighten. The real test will be Friday's US CPI data. If it comes in hot, the Fed hawkishness will puncture local gold exuberance overnight.
Sources (2): deccanherald.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
