MUMBAI— Gold prices in India edged lower this week, while the rupee continued to weaken slightly against the U.S. dollar amid concerns over tariffs.
Analysts expect gold to remain volatile in the near term, fluctuating between ₹97,000 and ₹98,500 per 10 grams.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold (10 grams) opened the week at ₹98,446, peaked at ₹99,017 on Wednesday, and closed at ₹98,534 by week’s end.
“Gold traded lower by ₹350 at ₹97,700 on the MCX, tracking softness in Comex gold, which hovered around $2,290 per ounce,” said Jateen Trivedi of LKP Securities. “The pressure stems from the Federal Reserve’s continued hawkish outlook, with no signs of imminent rate cuts, which has dampened sentiment for safe-haven assets. Investors are also awaiting key U.S. data expected later today.”
A report by DSP Mutual Fund noted that gold has surpassed its inflation-adjusted 1980s peak in 2024, reaching a new real high. Silver, however, remains far below its inflation-adjusted peak from 2011—potentially presenting an opportunity for investors.
“The U.S.’s capacity to sustain large trade and fiscal deficits is increasingly under strain, weakening the dollar’s role as a global reserve currency,” the report stated. “Gold has emerged as a credible alternative, attracting reserve flows. With global foreign exchange reserves at approximately $12.5 trillion and the gold market valued at $23 trillion—15% of which is held in India—even a modest 5% shift of reserves into gold could spark a prolonged rally. But the gold market may lack the depth to absorb such a large influx.”
Meanwhile, the USD/INR exchange rate dropped to 87.19 on Saturday, down 0.34% from the previous session. The rupee has weakened by 1.88% over the past month and 4.06% over the past year, remaining under pressure from a strengthening U.S. dollar. Market participants continue to watch global economic signals and trade policy developments closely. (Source: IANS)
