Gold and silver prices climbed sharply in the national capital on Friday, extending their gains for a second consecutive session as a weaker US dollar, softer bond yields and strong international market trends boosted demand for precious metals.
Gold of 99.9 per cent purity rose by Rs 1,200 to Rs 1,63,500 per 10 grams, inclusive of all taxes, according to local market traders. The yellow metal had closed at Rs 1,62,300 per 10 grams on Thursday.
Friday’s price marked the highest level for gold in more than three months. The metal was last trading around this level on May 19, when it was quoted at Rs 1,63,600 per 10 grams.
Silver witnessed an even stronger rally. Prices jumped Rs 5,000 to Rs 2,50,000 per kilogram, inclusive of taxes, compared with the previous close of Rs 2,45,000 per kg. Silver has gained Rs 15,000 over the past two trading sessions and reached its highest level in 15 weeks.
The white metal was last quoted close to Friday’s level on May 4, when it stood at Rs 2,49,500 per kg.
Weak Dollar Supports Bullion
Market analysts attributed the latest rally in precious metals to weakness in the US currency and a decline in longer-term Treasury bond yields.
“Gold extended its rally on Friday and is heading for its third consecutive weekly gain, while silver also remained strong,” Gaurav Garg, Head of Research at Lemonn Markets Desk, said. He noted that the softer US dollar and falling long-term Treasury yields were providing support to bullion.
In overseas markets, spot gold advanced by USD 81.58, or around 2 per cent, to USD 4,600.91 per ounce. Silver also strengthened, rising nearly 3 per cent to USD 69.87 per ounce.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said spot gold had climbed to around USD 4,600 per ounce, its highest level since May 18, 2026, while remaining on course for its third consecutive weekly gain.
He said strong investment demand, along with increased volatility in currency and bond markets, continued to favour gold.
Treasury Measures Add to Market Volatility
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said gold had gained more than 4 per cent during the week. He attributed part of the rally to the US Treasury Department’s decision to expand its bond-buying programme and double long-term debt buybacks aimed at controlling borrowing costs.
The announcement contributed to a decline in the US dollar and Treasury yields, giving bullion prices an additional boost. Although bond yields subsequently stabilised as investors assessed the sustainability of the Treasury measures, gold continued to hold on to most of its recent gains.
A modest decline in international oil prices also offered some support to bullion, Singh said.
Geopolitical Risks in Focus
Geopolitical developments added to uncertainty in financial markets. The Trump administration is expected to announce what it has described as its toughest economic sanctions against Iran.
Tehran, however, has rejected the proposed measures, describing them as another continuation of unsuccessful US policies. Iran has also pointed to rising US debt and record interest payments as challenges facing Washington amid elevated bond yields.
US Economic Data Awaited
Investors are now watching upcoming US economic indicators for further clues about the direction of monetary policy and interest rates. Among the key data points in focus are the US S&P Purchasing Managers’ Index (PMI) figures.
Market participants are expected to closely assess the data for signs of strength or weakness in the American economy, which could influence expectations surrounding the US Federal Reserve’s future policy decisions.
With the dollar, bond yields, geopolitical risks and monetary policy expectations all shaping investor sentiment, analysts expect precious metals to remain sensitive to global macroeconomic developments in the near term.
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Author: Shivam
Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]
