Gold prices in India witnessed a sharp uptick on Friday, with the precious metal climbing Rs 3,300 per 10 grams to reclaim the Rs 1.5 lakh mark. The yellow metal of 99.9 per cent purity settled at Rs 1,50,800 per 10 grams (inclusive of all taxes), up 2.2 per cent from the previous closing level of Rs 1,47,500, according to data from the Indian bullion market.
Reversal of Recent Decline
This rebound comes after a period of subdued performance, where gold had slipped below the psychologically significant Rs 1.5 lakh threshold. The latest rally marks a recovery of over Rs 3,300 per 10 grams in a single session, indicating strong buying interest among investors and jewellers. Analysts attribute the surge to a combination of global cues and domestic demand factors.
Market participants noted that the price jump was driven by a weakening US dollar and renewed safe-haven demand amid geopolitical uncertainties. Additionally, the onset of the wedding season in India typically boosts gold purchases, adding to the upward pressure on prices.
Impact on Consumers and Investors
For consumers, the price hike translates to higher costs for jewellery and gold purchases. However, existing holders of gold have seen the value of their investments appreciate. The return to Rs 1.5 lakh levels is seen as a positive sign for the broader bullion market, which has been volatile in recent months.
According to a Mumbai-based bullion dealer, “The sudden spike has caught many off guard, but it reflects strong underlying demand. We expect prices to remain elevated in the near term, supported by festive buying and global economic uncertainties.”
Global Factors at Play
On the international front, spot gold prices also gained momentum, rising above $2,450 per ounce during Asian trading hours. The correlation between domestic and global prices remains strong, with Indian rates closely tracking international benchmarks adjusted for import duties and currency fluctuations.
The Reserve Bank of India’s recent stance on interest rates has also influenced gold demand. With real interest rates remaining low, gold becomes an attractive alternative investment compared to fixed-income instruments.
Outlook for Gold Prices
Analysts predict that gold may test higher resistance levels if global uncertainties persist. However, any sharp appreciation in the rupee or a decline in international prices could cap further gains. For now, the yellow metal has regained its lustre, providing a boost to the sentiment in the bullion market.
