Gold prices in the national capital surged Rs 800 per 10 grams on Tuesday, with 99.9% purity gold climbing to Rs 1,47,700 per 10 grams (inclusive of taxes) from the previous close of Rs 1,46,900, according to a Times of India report. Silver, meanwhile, remained unchanged at Rs 2,21,500 per kilogram, reflecting subdued activity after a recent correction in the white metal.
Key price movements
| Metal | Previous Close (Rs) | Current Price (Rs) | Change |
|---|---|---|---|
| Gold (99.9% purity per 10 g) | 1,46,900 | 1,47,700 | +Rs 800 |
| Silver (per kg) | 2,21,500 | 2,21,500 | Unchanged |
Traders attributed the rise in gold to healthy domestic demand, as buyers continued to accumulate the yellow metal despite elevated price levels. The domestic rally mirrored strength in international markets, where gold prices advanced sharply.
Fundamental drivers: Fed, geopolitics, and China
Investors continued to monitor the US Federal Reserve's policy outlook for clues on interest rates. According to a Reuters poll, economists expect the central bank to keep its benchmark interest rate unchanged for the remainder of 2026 as it tackles persistent inflation. Interest rate expectations remain a significant influence on gold prices, because lower borrowing costs improve the appeal of non-yielding assets such as bullion.
Market participants also tracked diplomatic developments between the United States and Iran. According to analysts cited by The Times of India, optimism surrounding renewed diplomatic efforts reduced concerns over an immediate escalation in geopolitical tensions, contributing to a pullback in crude oil prices. Despite easing tensions, gold extended its gains as investors remained cautious about evolving developments in the Middle East.
China's efforts to stabilise its technology sector through large-scale state-backed investments lifted confidence in industrial metals, supporting silver demand. Silver has outperformed gold in international markets, registering stronger percentage gains, thanks to its dual role as both a precious and industrial commodity.
Demand-side support: Central bank buying and Chinese demand
Analysts pointed to sustained physical demand from China and continued purchases by central banks as two of the biggest factors supporting gold prices. Underlying demand for bullion remained resilient despite market volatility. Central bank buying has been an important pillar for gold over recent months, helping offset periods of profit booking and corrections in international markets. Healthy demand from China, one of the world's largest gold consumers, continued to provide a firm foundation for prices.
Outlook
With the Fed expected to hold rates steady, geopolitical risks still in focus, and structural demand from central banks and China remaining robust, gold and silver prices are likely to remain sensitive to macroeconomic data and central bank commentary. Silver's industrial demand outlook, particularly from China's technology sector, will be a key differentiator in its performance relative to gold. Traders will watch for any further shifts in US-Iran negotiations and Fed policy signals for the next catalyst.
Sources:
