Domestic gold and silver prices recorded a sharp rise during the week, with gold extending gains for the third consecutive week and silver also posting a significant increase.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at ₹1,52,363 per 10 grams at the beginning of the week and rose to ₹1,60,620 per 10 grams. This represents an increase of ₹8,257 in one week.
Gold prices across different purity categories also increased during the week. The price of 22-carat gold rose to ₹1,47,128 per 10 grams from ₹1,39,565 per 10 grams, an increase of ₹7,563.
The price of 18-carat gold increased to ₹1,20,465 per 10 grams from ₹1,14,272 per 10 grams, representing a rise of ₹6,193.
According to IBJA, the lowest gold price during the week was ₹1,52,884 per 10 grams in the morning session on August 19. The price subsequently increased to a weekly high of ₹1,60,620 per 10 grams in the evening session on August 21.
Silver also recorded a significant increase during the week. According to IBJA, the price of silver rose by ₹12,788 per kilogram, increasing from ₹2,33,842 per kilogram to ₹2,46,630 per kilogram.
The lowest silver price during the week was ₹2,27,392 per kilogram in the morning session on August 19. By the evening session on August 21, the price had risen to ₹2,46,630 per kilogram.
IBJA releases reference rates for gold and silver in the domestic bullion market in two sessions each day. Actual buying and selling prices in the market may differ from these rates because of differences in city, taxes, making charges and other costs.
The rise in gold and silver was also seen in international markets. Available market data showed gold reaching around $4,600 per ounce internationally, while silver was trading at around $69 per ounce.
Amid global economic uncertainty, investor demand for traditional safe-haven assets has increased. Gold has long been viewed as a safe-haven investment option during periods of economic and geopolitical uncertainty.
According to market experts, several factors are contributing to the recent rise in gold and silver prices, including softer bond yields and increased demand for safe-haven assets.
A decline in bond yields can increase the attractiveness of gold compared with non-interest-bearing assets. Uncertainty surrounding global economic conditions and monetary policy can also influence demand for precious metals.
Silver also receives support from industrial demand, meaning its price is influenced by both investment demand and industrial demand.
