Gold prices soar over ₹1,100 this week amid US tariff deal uncertainties

Gold prices surged ₹1,135 and silver prices soared over ₹2,000 this week amid uncertainties around the US tariff deal deadline (July 9) and a decline in the US dollar index.

On Monday, the 24-carat gold rate was at ₹95,576 per 10 grams, while it closed at ₹97,021 on Friday, IBJA data showed. Similarly, the 22-carat gold price surged ₹1,131 to ₹96,633 against Monday's price of ₹95,502 per 10 grams.

Meanwhile, the silver price settled at ₹107,580 per kg against the June evening closing price of ₹105,510 per kg, a rise of ₹2,070 per kg. Notably, silver hit an all-time high at ₹1,09,550 per kg on June 18.

Both the precious metals have given a recommendable return in the first half of the calendar year, with gold outperforming silver, surging 26%. Silver zoomed 22% during the said period.

On the contrary, in June itself, silver outperformed gold by a huge margin amid a fall in the gold-silver ratio.

“Silver outperformed gold in June (Silver gained by 9.41% in the international markets while gold gained marginally by 0.4% because of the fall in gold-silver ratio from over 100 to around 92-93 (fall in the ratio leads investors to move towards silver) combined with the critical $35/ounce mark that triggered momentum and technical buying on breakout”, explained Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd.

Moreover, Silver supply has been in deficit for 5 years in a row, and depleting inventories and record ETF inflows of over $1.6 billion in June boosted market sentiment for the metal, he added.

Considering silver’s use case in various industries including automobiles, clean energy trends, and tightness in supply, the analyst sees potential in silver ahead.

“Going ahead, silver has the potential to outperform gold, because gold is just an asset which is a haven, while silver, being a precious metal, is also an industrial metal”, Mallya said.

(This story was taken from syndicated feed and was only edited for style by Gujarat Samachar Digital team)