New Delhi: Gold and silver prices rose to their highest levels in more than three months in Delhi on Friday. A weaker US dollar and global demand supported the rally.
Both metals gained for the second session as investors moved towards safer assets amid uncertainty in currency and bond markets.
Gold gains ₹1,200
Gold of 99.9% purity climbed ₹1,200 to ₹1,63,500 per 10 grams, including taxes, according to traders.
The metal had closed at ₹1,62,300 per 10 grams on Thursday.
Gold was last seen around this level on May 19, when it stood at ₹1,63,600 per 10 grams.
Silver reaches 15-week high
Silver jumped ₹5,000 to ₹2,50,000 per kilogram, including taxes. This was its highest price in 15 weeks.
The metal had settled at ₹2,45,000 per kilogram in the previous session.
Silver has now gained ₹15,000 in two trading sessions. It was last near the level on May 4, when it traded at ₹2,49,500 per kilogram.
Global bullion shines
In overseas markets, spot gold advanced $81.58, or 2%, to $4,600.91 an ounce.
It reached its highest level since May 18 and was heading towards a third straight weekly gain.
Spot silver rose nearly 3% to $69.87 an ounce.
Why prices are rising
A falling US dollar makes gold cheaper for buyers using other currencies. Lower US Treasury yields also improve the appeal of non-interest-paying assets such as gold.
Bullion received support after the US Treasury expanded its bond-buying programme and doubled its purchases of long-term debt.
The action was aimed at controlling borrowing costs. It pushed the dollar and bond yields lower, giving precious metals momentum.
Gold has gained more than 4% during the week.
Geopolitical concerns also supported safe-haven buying. The Trump administration is expected to announce tougher economic sanctions against Iran.
A slight decline in international oil prices provided additional support.
Investors will now track US S&P purchasing managers’ index data for clues about the Federal Reserve’s future interest-rate decisions.
