Daijiworld Media Network - New Delhi
New Delhi, Jul 26: Despite a dip in global gold prices, domestic bullion rates in India remained largely flat this week, cushioned by a marginal decline in the rupee against the US dollar and continued investor interest in precious metals.
According to data from the India Bullion and Jewellers Association (IBJA), 24-carat gold opened the week at Rs 98,896 per 10 grams, peaked at Rs 1,00,533 midweek, and closed slightly lower at Rs 98,880. Analysts noted that gold faced global pressure due to reduced safe-haven demand following progress in tariff talks between the US, Japan, and the EU.
“Gold dipped by $25 to $3,345 globally, down 0.70%, as easing geopolitical tensions dimmed its appeal,” said Jateen Trivedi, VP – Research Analyst at LKP Securities. “However, rupee depreciation limited the fall in domestic markets, keeping MCX gold’s decline to just 0.50%.”
The Indian rupee slipped below Rs 86.50 per dollar, registering a 0.13% weekly decline, amid capital market profit booking and a stronger US dollar, which hovered near 97.68. Trivedi expects the rupee to trade in the Rs 86–?87 range in the near term, pending the outcome of next week’s US Federal Reserve interest rate decision, which could set the tone for currency and commodity markets.
Meanwhile, silver prices surged to an all-time high, breaching Rs 1.15 lakh per kg, marking a more than 34% increase since January, when prices stood at Rs 86,055. The futures market also reflected bullish sentiment for both gold and silver, driven by speculative interest and inflation hedging.
On the central banking front, the Reserve Bank of India (RBI) increased its gold reserves by $150 million, bringing total holdings to $84.499 billion, reflecting ongoing efforts to diversify amid global economic volatility.
Analysts now peg gold’s short-term domestic price range between Rs 97,000 and Rs 99,000 per 10 grams, as traders await clarity from the US Fed’s monetary policy stance.