Gold, silver hit record highs over inflation worries
Mumbai: Gold and silver surged to all-time highs on Friday, dampening consumer sentiment, jewellers said. At the retail level, gold climbed to ₹1,02,388 per 10 gm, while silver touched ₹1,17,572 per kg, The Economic Times reported.
Darshan Desai, CEO of Aspect Bullion & Refinery, told ET, “Gold prices are on track for another weekly gain as investors await a key inflation report that could influence the US Federal Reserve’s decision on interest rates next month.
"If inflation comes in hotter than expected, it could weigh on gold as it could limit the Fed’s flexibility to cut rates. However, ongoing concerns about the Fed’s independence and a weaker US dollar are likely to offer support for gold at lower levels.”
Analysts noted that the rally in bullion prices has been fuelled by a combination of domestic and global factors.
In India, the depreciation of the rupee against the US dollar has made gold more expensive, while safe-haven demand has grown amid concerns that political pressure on the Fed could accelerate interest rate cuts.
With both gold and silver trading at record highs, consumer demand has weakened even as investors continue to view precious metals as a hedge against economic uncertainty.
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