CHENNAI: The Indian Rupee showed resilience, strengthening against the US dollar amid favorable market conditions. Gold prices remained steady, with a positive outlook for the coming year due to geopolitical uncertainties. Silver prices experienced a slight uptick, reflecting ongoing market dynamics.
The rupee strengthened by 3 paise, closing at ₹83.50 per US dollar on Wednesday, supported by a retreat in the US dollar and significant foreign fund inflows. However, rising crude oil prices weighed on investor sentiments, restricting the upside potential.
The MCX Gold futures for August delivery closed at ₹72,449 per 10 grams, exhibiting a flat trend with a positive bias, and MCX Silver futures for September delivery closed at ₹91,849 per kg, marking a marginal increase.
Analysts anticipate substantial growth in gold prices over the next year, with expectations that they could reach ₹1,10,000 per 10 grams in India. This anticipated surge is attributed to ongoing geopolitical uncertainties, which continue to drive investor interest in gold as a safe-haven asset.
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Market Dynamics
Gold and silver prices have been influenced by global economic factors, including industrial demand and investor sentiment. While gold has garnered more attention as a safe-haven asset, silver's performance remains closely tied to industrial activity and broader economic indicators.