Gold prices surged by Rs 350 to Rs 79,200 per 10 grams in the national capital on Friday, driven by persistent buying from jewellers and a weakening rupee, as reported by the All India Sarafa Association. Traders attributed the rise in prices to the safe-haven appeal of gold, further supported by escalating geopolitical tensions, including the ongoing Russia-Ukraine war and unrest in the Middle East.
On Thursday, gold closed at Rs 78,850 per 10 grams. In a fourth consecutive session of gains, silver rose by Rs 900 to reach Rs 91,700 per kg. Over the holiday-shortened week, the white metal saw a notable increase of Rs 3,550 per kg across the past four sessions. The price of 99.5% pure gold also climbed by Rs 350, settling at Rs 78,800 per 10 grams, up from the previous closing of Rs 78,450 per 10 grams. Traders noted that the weakening rupee has further fueled demand for safe-haven assets like gold.
The rupee plunged to its lowest intraday level in nearly two years, touching a record low of 85.80 against the US dollar on Friday. The sharp decline was attributed to a strong US dollar and heightened month-end demand from banks and importers. However, a suspected intervention by the central bank helped the rupee recover some of its losses, and it ultimately settled 23 paise lower at 85.50 (provisional).