Gold Rate Today:An increase of Rs 250 was recorded in the price of gold on Friday, due to which it reached Rs 80,550 per 10 grams. There are many economic reasons hidden behind this rise in gold, which include instability in the foreign exchange market and demand for safe investment at the global level. At the same time, the decline in the Indian currency continued against the US dollar and one dollar touched the level of Rs 86 for the first time.
Investor activity in the domestic market
Continuous buying by retailers and stockists in the domestic market has also contributed to the increase in gold prices. According to All India Bullion Association, gold of 99.5% purity continued to shine for the fourth consecutive session and rose by Rs 250 to Rs 80,150 per 10 grams.
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How was the trend in silver?
While an increase was seen in the price of gold, the price of silver remained stable on Friday and traded at Rs 93,000 per kg. However, an increase of Rs 506 was recorded in silver contracts for March delivery on MCX, taking it to Rs 92,217 per kg. In the Asian futures market, the price of silver Comex futures increased by 0.6 percent to $ 31.20 an ounce. New technologies related to renewable energy and strengthening industrial demand due to the importance of silver in electronics have increased the demand for silver as a safe-asset.
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Rupee weakens amid rise in gold
On Friday, the rupee depreciated by 14 paise, taking it to the crucial level of 86 against the US dollar. This weakness of rupee has also affected the price of gold. Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said, “Investors are looking for safe haven investment in the form of gold due to the environment of uncertainty about the possible monetary policy of the US after the US President-elect Donald Trump takes power. This increased demand has also been the main reason for the continued rise in gold prices on Friday.
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Increasing demand in international market
A rise in gold prices has also been seen in the international market. COMEX gold futures increased by $ 16.10 an ounce, or 0.6%, taking its price to $ 2,706.90 an ounce. Renisha Chainani, head of research at Augmont, said, “The demand for safe investments is increasing due to uncertainty over Donald Trump’s policies and the budget crisis in Britain. Market players in the US are eyeing the upcoming non-farm payrolls soon.” and consumer sentiment data to predict future trends in the economy. Members of the Federal Open Market Committee (FOMC) have indicated that if the data remains as expected, “Interest rates may be cut further.”
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impact of international economic conditions
According to Dutch multinational ING Bank, precious metals have underperformed into early 2025. Geo-political tension, uncertainty about China’s economic recovery and increasing trend of protectionism in global trade are being held responsible for this. Bank analysts believe that due to the change in power in America, confusion regarding the market outlook has increased, because after Trump takes command, there is a threat of increased tariffs on Chinese goods. Investors believe that gold prices may come under pressure due to US increasing tariffs and strengthening of the dollar.
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signs of times to come
In the coming time, the possible policies of the US Federal Open Market Committee (FOMC), employment data and consumer sentiment index may play a big role in deciding the direction of gold and rupee. Amidst the recent increase in gold prices and the weakness of the rupee, this is the time for investors to invest cautiously and wisely.
