Precious metals enthusiasts are celebrating as gold prices posted a staggering weekly gain exceeding 2,300 rupees, underscoring the asset’s enduring status as an inflation hedge. From Monday’s opening quotes to Friday’s close, the metal climbed relentlessly, with MCX futures and spot markets reflecting the bullish sentiment. This week’s action has pushed 10 grams of 24-karat gold into premium territory, delighting long-term holders but testing the patience of short-term speculators.
Not to be outdone, silver prices have vaulted beyond 2.42 lakh rupees per kilo, marking a significant breakout from recent consolidation phases. The rally is broad-based, driven by industrial demand recovery in electronics and solar sectors, coupled with traditional jewelry buying ahead of wedding and festival seasons. A depreciating Indian rupee has amplified the gains in local currency terms, even as global spot prices fluctuated mildly.
Industry insiders attribute the momentum to a confluence of global events: renewed safe-haven flows amid Middle East flare-ups, aggressive gold accumulation by Russia’s central bank, and optimism over India’s GDP growth projections. ‘This isn’t just a blip; it’s a structural shift towards hard assets,’ opined a Delhi-based bullion consultant. Refiners are working overtime, but supply chain bottlenecks persist.
As the week wraps up, traders eye weekend developments for carryover effects. With no immediate signs of reversal, gold and silver could extend gains into next week, potentially setting the stage for all-time highs. Investors are advised to diversify wisely in this heated market.