Gold prices surged by ₹900 to reach ₹1,06,970 per 10 grams in the national capital on Friday, moving closer to record levels as the rupee hit fresh lows and global market sentiment strengthened.
According to the All India Sarafa Association, gold of 99.5% purity also climbed ₹900 to ₹1,06,100 per 10 grams (including all levies), compared with Thursday’s closing level of ₹1,05,200. Silver prices, however, held steady at ₹1,25,600 per kg.
Analysts attributed the sharp rise to increasing expectations that the US Federal Reserve will lower interest rates later this month, following weak US economic data. “Gold prices advanced on the final trading day of the week amid growing bets on a September rate cut and rising safe-haven demand,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities. He added that the stalled Russia–Ukraine peace talks had also supported demand for the precious metal.
On the currency front, the rupee closed at a record low of 88.27 against the US dollar, down 15 paise, pressured by foreign capital outflows and concerns over potential new US tariffs on India.
In the international market, spot gold was trading higher at $3,551.44 per ounce, not far from its record high of $3,578.80 touched earlier this week. Spot silver also gained 0.22% to $40.76 per ounce.
Market participants are closely watching the US nonfarm payrolls report due later on Friday, which could provide clearer signals on the strength of the American labor market. “The Federal Reserve is now paying closer attention to employment trends than inflation, and a weak jobs report could pave the way for back-to-back rate cuts,” said Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan.