Gold Price Surges Past Two-Month High as Safe-Haven Demand Defies Crude Oil Rally

Gold Price Surges Past Two-Month High as Safe-Haven Demand Defies Crude Oil Rally​

Gold prices continued their relentless ascent for the sixth consecutive session, reaching a two-month peak in the national capital on Tuesday. The precious metal climbed by ₹1,200 to settle at ₹1,57,200 per 10 grams (inclusive of all taxes), according to the All India Sarafa Association. This rally underscores robust investment demand from traders despite firm commodity pricing.

The yellow metal registered a significant increase of ₹9,800, or 6.65 per cent, over the past six trading sessions. It has risen steadily from the level of ₹1,47,400 per 10 grams recorded on August 3. Previously, it was last seen trading near this height on June 12, quoting at ₹1,56,900 per 10 grams.

Silver and Gold Rallying Ahead of US Economic Clues​

Silver is also riding the momentum, soaring by ₹2,000 to reach ₹2,42,000 per kilogram (inclusive of all taxes). This puts the white metal at its highest level in over two months. The surge in silver is attributed to strong industrial demand combined with positive investor sentiment, according to Gaurav Garg, Head of Research at Lemonn Markets Desk.

Both precious metals are being held aloft as investors increase their safe-haven buying. This defensive move comes ahead of crucial US inflation data releases, which are expected to provide fresh insights into the Federal Reserve's interest-rate policy outlook, said Gaurav Garg.

Global Bullion Movement and Crude Oil Uncertainty​

Globally, spot gold experienced fluctuations in the market. At one point, the price rose as high as USD 4,435 per ounce before reversing gains. This initial upward momentum faded as crude oil rates continued to advance sharply.

Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, noted that the global rise in spot prices was tempered by rising crude oil rates. Meanwhile, silver dropped nearly 1.3 per cent, trading at USD 64.90 per ounce. The international market tracked gold slightly lower, at USD 4,373.43 per ounce.

Geopolitical Tensions Fuel Market Uncertainty​

The persistence of a stalemate over the Strait of Hormuz added a layer of uncertainty to the investment environment. These geopolitical tensions are keeping bullion in high demand from investors concerned about global stability.

Adding intensity to this instability, Iran claimed that the US was preparing for a military operation and stated that the IRGC had been ordered to remain prepared. Such escalatory claims continue to influence investor risk appetite.

Market Focus Shifts to Crucial US Inflation Data​

For traders specializing in bullion, the upcoming US inflation report represents the next significant test case. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, emphasized that the market is poised for action based on these reports. The US July consumer price report is scheduled for Wednesday, followed by producer price numbers on Thursday. These figures are expected to offer critical signals regarding monetary policy from the Federal Reserve.