Dollar Index Weakens, Fuel Slump Boost Precious Metals in India

Delhi, 4 July – A dip in the dollar index combined with a cooling of inflation forecasts sparked a notable rally in India’s gold and silver markets this week. The IBJA reported that 24‑carat gold surged by ₹6,471 to settle at ₹1,46,344 per 10 grams, while the 22‑carat and 18‑carat grades posted gains of ₹5,927 and ₹4,853 respectively.

The week’s price range for 24‑carat gold stretched from a low of ₹1,39,434 on the morning of July 1 to a high of ₹1,46,344 on the evening of July 3. Silver followed suit, climbing ₹17,317 to ₹2,33,858 per kilogram, up from ₹2,16,541 a week earlier. Its intra‑week floor was ₹2,21,355 on July 1 morning and the ceiling ₹2,33,858 on July 3 evening.

These rates are published twice a day by the India Bullion Jewellers Association, reflecting both the morning and evening trading sessions. On the global stage, gold hovers close to $4,170 per ounce and silver near $62 per ounce. Analysts say the rally is driven by a weakening crude oil market that eases inflation concerns and a softer dollar index that has made precious metals comparatively more appealing to Indian buyers.