Gold and silver continued their sharp upward move in the national capital on Friday, with both precious metals touching levels last seen more than three months ago. The gains came as a weaker US dollar and positive global market trends encouraged buying in bullion.Gold of 99.9 per cent purity climbed Rs 1,200 to Rs 1,63,500 per 10 grams, inclusive of all taxes, from Thursday’s Rs 1,62,300 per 10 grams, local traders said. The price was last around this level on May 19, when gold was quoted at Rs 1,63,600 per 10 grams.Silver posted an even stronger move, rising Rs 5,000 to Rs 2,50,000 per kilogram, inclusive of all taxes. After ending Thursday at Rs 2,45,000 per kg, silver has now added Rs 15,000 in two sessions. The metal was last quoted near Friday’s level on May 4, at Rs 2,49,500 per kilogram.“Gold extended its rally on Friday’s session and is heading for its third consecutive weekly gain, while silver also remained strong, supported by a weaker US dollar and falling longer-term Treasury bond yields,” Gaurav Garg, Head of Research at Lemonn Markets Desk, said.The international bullion market also saw strong buying. Spot gold rose USD 81.58, or 2 per cent, to USD 4,600.91 per ounce, while silver gained nearly 3 per cent to USD 69.87 per ounce.“Spot gold surged to around USD 4,600 an ounce, its highest level since May 18, 2026, and remained on track for a third consecutive weekly gain,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.Gandhi said strong investment demand, along with increased volatility in currency and bond markets, continued to lend support to the precious metal.Gold has gained more than 4 per cent during the week, according to Praveen Singh, Head of Commodities at Mirae Asset ShareKhan. He attributed the move partly to the US Treasury Department’s decision to expand its bond-buying programme and double long-term debt buybacks aimed at containing borrowing costs.The Treasury’s move resulted in a sharp decline in the US dollar and bond yields, giving bullion an additional boost. US yields later stabilised as investors raised questions over how durable the Treasury’s measures would be, but gold held on to most of its gains.Singh also pointed to a modest decline in international oil prices as another factor supporting bullion.Meanwhile, developments surrounding Iran added to uncertainty in the markets. The Trump administration is set to announce what it has described as the harshest economic sanctions on Iran. Tehran has rejected the move, calling it a continuation of failed tactics and arguing that Washington is itself facing soaring debt and record interest payments amid elevated bond yields.Investors are also looking ahead to key economic indicators, including US S&P PMIs, for indications about the American central bank’s monetary policy outlook, Singh said.
