On Monday, the price of gold rose by Rs 200 to Rs 1,46,300 per 10 grams in the national capital Delhi. A weak rupee and marginal rise in foreign markets were responsible for this. Gold of 99.9 per cent purity closed at Rs 1,46,100 per 10 grams on Friday. According to local traders, the price of silver per kg (including all taxes) is Rs. remained stable at 2,02,000. Earlier, it had seen declines for three consecutive sessions. Let us also tell you what is the main reason behind this surge in gold.

Effect of Rupee Depreciation

Traders said the rupee weakened for the third consecutive session and fell 29 paise to 95.22 against the US dollar on Monday. This made gold imports expensive in dollar terms, which supported domestic prices. Saumil Gandhi, Senior Commodity Analyst, HDFC Securities, said that gold prices rose in the domestic market on Monday. A modest recovery in foreign markets, lower crude oil prices, a steady US dollar and decline in benchmark Treasury yields supported gold prices. In international markets, spot gold rose by USD 17.49 (or 0.44 percent) to USD 4,013.12 an ounce, while silver was steady at USD 53.91 an ounce.

What do the experts say?

Praveen Singh, head of commodities at Mir Asset Sharekhan, said spot gold rose as Gulf countries tried to restart diplomatic talks between the US and Iran. On the other hand, Washington was also considering new military options against Tehran. According to Jatin Trivedi, commodity and currency research analyst (VP) at LKP Securities, all eyes are on the Federal Reserve’s policy decision this week. Amid inflation concerns and uncertainty surrounding the US election, investors are closely watching the future of interest rates and Kevin Warsh’s guidance (forward guidance).