Gold Prices Surge Amid Renewed Investor Interest: What You Need to Know

Gold Prices Climb in National Capital

New Delhi: On Thursday, gold prices increased by Rs 250, reaching Rs 98,670 per 10 grams in the national capital, driven by a resurgence in buying from investors and stockists, as reported by the All India Sarafa Association.

The price of 99.9% pure gold had previously closed at Rs 98,420 per 10 grams on Wednesday.

Meanwhile, gold with 99.5% purity saw a rise of Rs 200, now priced at Rs 98,200 per 10 grams, including all taxes. This follows a previous closing price of Rs 98,000 per 10 grams.

In contrast, silver prices remained stable at Rs 1,04,000 per kilogram, also inclusive of taxes, on Thursday.

Analysts noted that gold's upward trend was supported by renewed interest in safe-haven assets amid ongoing uncertainties surrounding US trade policies.

Saumil Gandhi, a Senior Analyst in Commodities at HDFC Securities, highlighted that concerns regarding the potential effects of US President Donald Trump's trade decisions on the global economy have bolstered gold prices.

In international markets, spot gold saw a slight increase, reaching $3,324.40 per ounce.

On Wednesday, President Trump announced a significant 50% tariff on Brazilian goods effective from August 1.

Chintan Mehta, CEO of Abans Financial Services, pointed out that the latest minutes from the US Federal Reserve's FOMC meeting indicate a cautious stance among officials regarding the economic outlook, with a preference for gathering more data before making decisions on interest rate cuts.

Additionally, higher-than-expected crude oil inventories have helped stabilize energy prices, alleviating inflation worries. This combination of a cautious Federal Reserve and easing inflation supports the likelihood of future interest rate cuts, which favors gold by lowering the opportunity cost of holding non-yielding assets.