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

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

On June 30, the 24-carat gold rate was at INR 95,886 per 10 grams, while it closed at INR 97,021 on Friday, IBJA data showed.

Similarly, the 22-carat gold price surged INR 1.039 to INR 88,871 against Monday's price of INR 87,832 per 10 grams.

Also read: Indian stock markets end week lower amid trade deal concerns, profit booking

Meanwhile, the silver price settled at INR 107,580 per kg against the June evening closing price of INR 105,510 per kg, a rise of INR 2,070 per kg. Notably, silver hit an all-time high at INR 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 outperformed silver, surging 26 per cent. Silver zoomed 22 per cent 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 per cent in the international markets while gold gained marginally by 0.4 per cent 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.