Gold Price Update
The gold prices in the bullion market of Delhi have experienced a notable increase, rising by ₹600 to reach ₹76,950 per 10 grams. This surge in price is attributed to a rebound in international gold markets. Just a few days ago, during the last trading session, gold of 99.9 percent purity was trading at ₹76,350 per 10 grams. Similarly, gold of 99.5 percent purity saw its price rise by ₹600, closing at ₹76,600 per 10 grams, compared to its previous price of ₹76,000. Currently, gold is trading at an all-time high.
Reasons for the Increase in Gold Prices
The recent uptrend in gold prices can be primarily linked to increasing demand in the jewelry market. Data from the All India Sarafa Association indicates a decrease in silver prices, which fell by ₹1,000 per kg to ₹90,000 due to a dip in demand from industrial sectors and coin manufacturers, halting its seven-day price rally. The previous closing price of silver was ₹91,000 per kg.
Market Activity and Futures Trading
In futures trading on the Multi Commodity Exchange (MCX), the gold contract for October delivery saw an increase of ₹184, or 0.25 percent, reaching ₹74,224 per 10 grams. Conversely, the December silver contract saw a decline of ₹1,035, or 1.15 percent, dropping to ₹89,100 per kg. According to Chintan Mehta, CEO of Abans Holdings, gold prices have surged by an impressive 27 percent this year, marking a significant milestone.
Future Projections by Experts
Experts predict that gold prices may continue to rise due to the increasing demand for gold as a safe-haven asset, particularly in light of growing geopolitical tensions. The ongoing conflict in West Asia, especially the hostilities involving Israel and Gaza, adds to market anxiety. In global markets, Comex gold inched up by 0.04 percent to reach USD 2,647.30 per ounce. Saumil Gandhi, a commodity expert at HDFC Securities, notes that gold prices hit this new record partly due to a stable dollar and the consistent demand for physically-backed exchange-traded funds, as investors seek to mitigate economic uncertainties and geopolitical risks. In contrast, silver prices fell to USD 30.96 per ounce in Asian trading hours.
Understanding Gold as an Investment
Investing in gold has historically been regarded as a reliable strategy during times of economic uncertainty. With its intrinsic value and universal demand, gold serves not only as a protective asset but also as a strategic buffer during market volatility. As more individuals and institutions turn to gold to safeguard their investments, it is essential to monitor trends and maintain a portfolio that is adaptable to the changing economic landscape.
