Overview
- Global spot gold rose above $4,100 per ounce with intra‑session peaks near $4,140 and spot silver approached $60 per ounce during Wednesday and Thursday trading, driven by renewed buying in response to Middle East tensions and rising oil prices.
- Domestic markets moved quickly: India’s 10‑gram gold rate jumped to about Rs 1,49,600 on Wednesday and Pakistan’s gold per tola rose to Rs 433,836, reflecting fast pass‑through from international benchmarks and local demand.
- Analysts say the rally is fuelled mainly by dip buying, physical purchases and ETF inflows rather than a clear shift in fundamentals, and some Indian futures and city spot quotes showed small dips on Thursday as traders awaited the Fed decision.
- Higher oil, which pushed Brent toward about $91 per barrel, raises near‑term inflation risk that supports bullion but also increases the chance the Federal Reserve will keep rates higher, a combination that could cap or reverse gains.
- Background: bullion hit all‑time highs in late January before a multi‑month correction driven by stronger U.S. rates and a firmer dollar, so the current move is seen as tactical and its durability will hinge on upcoming U.S. data and Fed guidance.