Gold Prices Rebound Sharply! China’s Rising Demand and Global Trends Push Bullion Higher

Brief By Newsbrief / 1:14 PM on 04 Jul 2026

After witnessing a decline due to weak domestic demand, gold and silver prices have staged a strong comeback in both Indian and global markets. Rising demand from China, coupled with expectations of lower US interest rates, has pushed bullion prices sharply higher over the past week.

On Friday, the price of gold increased by ₹2,000, reaching ₹1,47,773 per 10 grams. Over the past week, gold has recovered by nearly ₹7,000, after slipping to around ₹1.40 lakh per 10 grams earlier this week. Silver has also witnessed a strong rally, gaining approximately ₹16,000 during the same period.

In the international market, gold is heading for its first weekly gain in five weeks. Spot gold was trading at around $4,184.75 per ounce, while August gold futures stood at $4,197.20 per ounce, reflecting improved investor sentiment.

Market experts attribute the rally largely to weaker-than-expected US employment data. According to the US Bureau of Labor Statistics, non-farm payrolls increased by only 57,000 jobs in June, easing concerns that the US Federal Reserve may raise interest rates in the near term. Lower interest rate expectations generally support gold prices, as the precious metal becomes more attractive to investors.

China has also emerged as a key driver of the recent rally. Gold discounts in the Chinese market have narrowed significantly compared to last week, indicating stronger buying interest and reducing the need for sellers to offer heavy discounts.

Commodity analysts advise investors not to chase prices after a sharp rally. Instead, they recommend accumulating gold and silver gradually during market corrections. For long-term investors, systematic investment plans (SIPs) in Gold and Silver ETFs remain a disciplined and suitable strategy to build exposure while managing market volatility.