Gold prices extended their rally on Tuesday, posting a third consecutive weekly gain after the United States Treasury announced an unexpected acceleration in the buyback of long‑dated government bonds. The move, aimed at reducing the Treasury’s debt servicing burden, lifted expectations of lower long‑term yields and nudged the dollar lower, providing a tailwind for the precious metal. S. Treasury yields, which in turn eased pressure on the Indian rupee that had been weakening against the dollar.
Indian equity indices, led by the Sensex and Nifty, slipped modestly on the day as investors rotated into safe‑haven assets. The gold price surge also lifted the domestic gold ETF inflows, reflecting heightened investor appetite for inflation hedges. For the average Indian salaried investor, the rally reinforces gold’s role as a portfolio diversifier, especially when equity valuations appear stretched and inflation remains a concern. Spot gold is now trading above ₹66,000 per 10 gram, making it an attractive option for both physical purchases and exchange‑traded funds.
S. yields and the rupee, as a sudden reversal could temper the metal’s momentum. Keeping an eye on Treasury policy and global yield trends will help Indian investors gauge whether the current gold rally can be sustained.