Gold Rate Update: As of now, gold has attained an unprecedented peak with prices soaring to Rs 77,850 for 10 grams of 24-carat gold in Delhi. This remarkable increase occurs during the Shraadh period, which is typically associated with lower gold prices. Prospective buyers are left contemplating how far gold prices might ascend as we approach Diwali. The surge in gold prices in the global market has directly influenced the domestic rates.
Current Gold Prices in Delhi
On a recent Wednesday, gold prices in Delhi’s bullion market spiked by Rs 900, reaching a historical high of Rs 77,850 per 10 grams. This information comes from the All India Sarafa Association. Just a day prior, gold closed at Rs 76,950 for the same quantity of 99.5% purity.
Factors Behind the Rising Gold Prices
In conjunction with gold, silver has also seen a significant rise, increasing by Rs 3,000 to reach Rs 93,000 per kg due to higher demand from industrial units and coin makers. Gold of 99.5% purity surged to an all-time high of Rs 77,500 per 10 grams, up from Rs 76,600 in the previous trading session.
Surendra Mehta, the National Secretary of the Indian Bullion and Jewelers Association (IBJA), predicts that the international gold prices could exceed $3,200 per ounce shortly. Commodity expert Pranav Mer, associated with BlinkX and JM Financial, reiterates that the current highs are a result of vigorous activity in futures trading.
Analysts attribute the rising gold prices to several factors, including a weak dollar, anticipated interest rate cuts by global central banks, and a growing preference for gold as a safe investment, coupled with a surge in ETF funds.
Market Dynamics
Moreover, the rise in gold prices can also be linked to continuous purchasing by jewelers and a positive trend in international markets. For instance, gold contracts for October delivery in MCX futures trading hit a new record at Rs 76,000 per 10 grams, while silver contracts for December fell by Rs 419, settling at Rs 91,974 per kg. On a global scale, Comex gold is currently trading 0.15% higher at $2,681.10 an ounce, nearing record highs of $2,694.89 per ounce during the trading day.
According to Manav Modi, a Commodity Expert at Motilal Oswal Financial Services Ltd, the dual surge in domestic and Comex gold prices is primarily due to optimism regarding potential interest rate cuts in the U.S., alongside rising geopolitical tensions influencing market sentiment.
Gold and Silver Prices in Indore
In the local Indore bullion market, gold also saw an increase of Rs 800 per 10 grams, with the current price set at Rs 77,000. Meanwhile, silver has climbed to Rs 90,300 per kg, and silver coins are being sold at Rs 950 each.
Conclusion
As we look ahead, potential gold buyers in India are left pondering the trajectory of gold prices as Diwali approaches. The interplay of domestic demand, global market dynamics, and economic indicators will play a crucial role in dictating future price movements.
