Gold prices soar to ₹78,700 per 10 grams amid rising demand

Gold prices surged by ₹250 to an all-time high of ₹78,700 per 10 grams on Monday, reflecting consistent buying support from jewellers and strong trends in international markets. This marks an increase from the previous closing price of ₹78,450 per 10 grams on Friday. Meanwhile, silver prices experienced a decline, dropping ₹200 to ₹94,000 per kg from ₹94,200 per kg. The increase in gold prices is primarily attributed to rising domestic demand from stockists and retailers, indicating a robust interest in the precious metal.

As global tensions escalate, particularly in the Middle East, investors are turning to gold as a safe-haven asset. The ongoing conflict between Israel and Iran has contributed to this demand, as any disruptions in oil supplies or broader geopolitical instability can lead to significant inflationary pressures. Traders have observed that the decline in equity markets has also driven investors toward gold, further boosting its appeal. Currently, gold of 99.5% purity is priced at ₹78,300 per 10 grams, up from ₹78,100 in the last session.

In international markets, COMEX gold is trading slightly higher at $2,671.50 per ounce, up by 0.14%. The market sentiment has been influenced by tempered expectations regarding aggressive interest rate cuts from the US Federal Reserve, which has added to the demand for gold. Meanwhile, silver has fallen 0.61% to $32.20 per ounce. Analysts suggest that the combination of geopolitical tensions and upcoming US inflation data will significantly impact gold prices in the near future.

Looking ahead, experts predict a potential price correction in the coming weeks, estimating that gold prices could settle around $2,600 per ounce and ₹75,000 per 10 grams domestically. Investors are advised to watch these developments closely for possible buying opportunities, especially with the festive season approaching. With increasing interest in gold ETFs, which saw inflows of ₹1,337.4 crore in July, the demand for gold remains strong despite the recent price spikes.