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Rupee weakens against dollar due to strong American currency, despite positive equity market sentiment and lower inflation rates.

Gold February futures opened at Rs 78,298 per 10 grams, up 0.18%, while silver March futures rose to Rs 90,747/kg. Gold gained Rs 1,550 in a week, while silver remained flat. Volatility is expected due to the US inflation data and dollar fluctuations. Gold prices in major cities show variations, with pure gold in Delhi priced at Rs 61,328/8 grams.

Investors now await the Consumer Price Index (CPI) print due at 1330 GMT to gauge the Fed's policy path. Any upside surprise could further close the door on future Fed easing.

India's wholesale price inflation increased to 2.4% in December from 1.9% in November. This rise was due to higher costs of fuel, power, and non-food articles. Inflation in manufactured goods and primary articles also saw an uptick. However, food inflation eased slightly, with vegetable prices seeing a significant surge.

US producer inflation increased by 0.2 percent in December, less than the expected 0.4 percent. This was due to cooler food costs. The Federal Reserve is monitoring this progress closely as it impacts their policy decisions on interest rates. The consumer inflation report, expected midweek, will be closely watched by analysts.

The Indian rupee continues to lose value. Yet, economists believe it is still overvalued based on the real effective exchange rate (REER). Since November, the rupee has fallen about 2 percent. Experts expect the rupee to stay under pressure until clarity on Donald Trump's policy decisions. Inflation trends will also affect the rupee's valuation.

Rupee rebounds from record low against dollar as domestic markets recover, supported by easing inflation and weak dollar.

In the manufactured products category, which holds a weightage of 64.2 per cent in the index, inflation rose to 2.14 per cent in December, up from 2 per cent in November

Silver ETFs offer Indian investors a modern, efficient way to invest in silver without the hassles of physical ownership. With Rs 14,000 crore invested, these ETFs provide security, convenience, and diversification. Silvers dual role as a precious metal and industrial commodity makes it a versatile investment, especially during inflation. Silver ETFs can hedge against market volatility and enhance portfolio stability.

Wholesale Inflation In December 2024: The fuel and power category witnessed a deflation of 3.79 per cent in December, against a deflation of 5.83 per cent in November. In manufactured items, inflation was 2.14 per cent, against 2 per cent in November.