Gold prices in the Indian market advanced sharply on Tuesday, reaching Rs 1.64 lakh per 10 grams, driven by positive global cues. The precious metal gained Rs 1,200 from its previous close, reflecting strong investor sentiment amid geopolitical uncertainties and a weaker US dollar.
Global Factors Driving Gold Prices
Internationally, gold prices edged higher as the US dollar weakened and Treasury yields dipped. Spot gold rose 0.3% to $2,352.29 per ounce, while US gold futures climbed 0.5% to $2,365.40. Analysts attribute the rally to safe-haven buying amid ongoing tensions in the Middle East and expectations of a potential Federal Reserve rate cut later this year.
Silver and Other Precious Metals
Silver also witnessed a strong uptrend, gaining Rs 1,500 to trade at Rs 72,000 per kilogram. Other precious metals like platinum and palladium also posted gains, tracking the overall positive sentiment in the commodities market.
Market experts suggest that the upward momentum in gold could continue in the near term, supported by central bank purchases and robust demand from China and India. However, they caution that any unexpected economic data or hawkish Fed commentary could trigger profit-booking.
In the domestic market, gold prices have been on a rising trajectory over the past few weeks, with the yellow metal gaining nearly 15% so far this year. Investors are advised to monitor global developments closely before making fresh investments.
