Gold climbs for 5th session as rupee supports price rally

Gold extended its advance for a fifth consecutive session on Monday, rising ₹2,000 to ₹1.56 lakh per 10 grams in the national capital as a weaker rupee raised the cost of imported bullion, while silver surged ₹5,200 per kg.

Gold of 99.9% purity had settled at ₹1,54,000 per 10 grams in the previous session, according to the All India Sarafa Association. Silver resumed its upward move in the physical market, climbing to ₹2,40,000 per kg, inclusive of taxes, from ₹2,34,800 on Friday. Futures also strengthened. Gold for October delivery on the Multi Commodity Exchange rose ₹455, or 0.3%, to ₹1,52,275 per 10 grams, with turnover of 1,127 lots. 

Firm spot demand and fresh positioning supported prices. Silver for September delivery advanced ₹2,514, or 1.09%, to ₹2,33,980 per kg on the MCX, with turnover at 1,496 lots. A positive overseas trend provided additional support. The rupee weakened 11 paise to provisionally settle at 95.28 against the US dollar as a stronger greenback and higher global crude prices weighed on the domestic currency. 

Rupee depreciation makes dollar-denominated bullion more expensive for Indian buyers. International gold, however, remained subdued following its recent rally.  

Spot gold traded marginally lower at $4,335.32 an ounce, while gold futures slipped 0.16% to $4,334.53 in New York.

Silver outperformed, with spot prices at $63.90 an ounce and futures gaining 0.41% to $63.81. Some profit-taking emerged after gold touched a seven-week high, with investors awaiting US inflation data for fresh signals on the Federal Reserve’s monetary-policy path.

Expectations of a less aggressive Fed and continuing geopolitical tensions in West Asia remain supportive for precious metals. 

However, elevated crude oil prices, currency movements and profit-taking at higher levels could influence the near-term direction of domestic bullion.

Despite overseas caution, domestic precious metals remain supported by rupee depreciation, firm demand and geopolitical uncertainty, with currency and crude movements shaping near-term direction.