Gold Prices Surge For Second Straight Session, Climb ₹1,400 To Near ₹1.61 Lakh Per 10 Grams In Delhi Amid Strong Domestic Demand

Gold prices surged for the second consecutive day, reaching nearly Rs 1.61 lakh per 10 grams in Delhi as of September 4, 2022. This marks an increase of Rs 1,400, or roughly 0.9%, from the previous day's closing price of Rs 1,59,500 per 10 grams. Meanwhile, the price of silver remained steady at Rs 2,40,500 per kilogram. The rise in gold prices was attributed to sustained buying interest in the domestic bullion market, despite a cautious sentiment among investors anticipating key global economic data that may impact interest rates and the outlook for precious metals.

Experts have noted that domestic silver prices have plummeted by over 40% from their January peak, hovering between Rs 2.3 lakh and Rs 2.4 lakh per kilogram. However, investment demand for silver remains low, which has raised concerns about dealer inventories. If demand for silver does not recover, it could result in an additional 2,000 tonnes of silver being stored, potentially exacerbating inventory issues.

On the global front, spot gold experienced a slight decline, settling at USD 4,465.34 per ounce, while silver slipped by 0.38% to USD 66.72 per ounce. Market analysts are cautiously observing the market's reaction to the upcoming US non-farm payrolls report, which is expected to provide valuable insights into the economic health of the United States and influence the Federal Reserve's monetary policy decisions.