Gold rises to $4,734 and silver rallies after US inflation
Gold and silver prices shot up on Wednesday thanks to unexpectedly high US inflation numbers, with gold futures on COMEX climbed $49 to $4,734 per troy ounce, while silver hit a two-month high at $89.88 after rallying 22.3% in the last eight trading sessions.
Even though rising inflation usually means the Federal Reserve might hike rates (which isn't great for gold), strong central bank buying and safe-haven demand are keeping prices high.
India hikes gold and silver tariffs
India raised import tariffs on gold and silver from 6% to 15% to protect its foreign exchange reserves, which pushed domestic prices way up.
MCX gold futures jumped ₹11,055 per 10gm to ₹164,497; silver soared ₹25,000 per kilogram to ₹304,177, the highest in over three months.
Analysts say this could make people switch from buying imported gold to investing in gold ETFs since imported metals are now pricier.