Gold became more expensive in the national capital on Tuesday, as the prices surged by Rs 600 to Rs 1,00,770 per 10 grams, supported by a weaker rupee and firm global trends, according to the All India Sarafa Association. The metal of 99.9% purity had settled at Rs 1,00,170 per 10 grams on Monday.Gold of 99.5% purity also rose, climbing Rs 500 to Rs 1,00,400 per 10 grams (inclusive of all taxes) compared with the previous close of Rs 99,900 per 10 grams.Silver prices saw a sharp rally, jumping Rs 3,000 to revisit their all-time high of Rs 1,18,000 per kg (inclusive of all taxes), after closing at Rs 1,15,000 per kg on Monday.“Gold prices rose on Tuesday as investors sought traditional safe-haven assets after the US President Donald Trump’s decision to remove Federal Reserve Governor Lisa Cook, which raised concerns about the independence of the central bank,” Saumil Gandhi, senior analyst – Commodities at HDFC Securities, told PTI.Gandhi further added that US President Trump’s move had also increased pressure on the Fed’s leadership to cut interest rates soon, a step that usually benefits non-yielding gold.The rupee weakened further, slipping by 12 paise to close at 87.68 (provisional) against the US dollar on Tuesday. Currency markets were rattled after the US issued a draft notice signalling plans to impose an additional 25% tariff on Indian goods.Globally, spot gold was up 0.37% at USD 3,378.37 per ounce in New York.“Spot gold surged, buoyed by renewed dollar weakness amid concerns over the US central bank’s independence after President Trump dismissed Fed Governor Lisa Cook,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.Spot silver, however, edged lower by 0.21% to trade at $38.48 per ounce.“Uncertainty around tariffs is adding another layer of support. Trump’s move to impose an additional 25 per cent tariffs on India starting on August 27, coupled with escalating tensions in the Russia-Ukraine war, has left traders sceptical about any meaningful progress in peace talks,” Chintan Mehta, CEO, Abans Financial Services, said.He further noted that central banks, particularly in China and Turkey, continue to boost their gold reserves, giving the metal more momentum. Investors are now awaiting key US economic data, including jobless claims and GDP revisions, to assess the Federal Reserve’s next move on interest rates.
