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Home Gold News Gold Prices Surpass ₹79,000 Mark as Festive Demand and Global Factors Drive Growth

Gold Prices Surpass ₹79,000 Mark as Festive Demand and Global Factors Drive Growth

by anna

In a remarkable surge, gold prices in India have crossed the ₹79,000 mark, reaching a new high of ₹78,950 per 10 grams. This increase is attributed to heightened festive demand and favorable global market conditions. The rise in gold prices comes on the heels of significant buying by local jewelers in preparation for the upcoming festive season, which typically sees increased consumer interest in gold.

Gold Price Surge: The price of 99.5% purity gold rose by ₹450, marking a substantial increase from the previous day’s close of ₹78,500 per 10 grams.

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Silver Prices: In contrast, silver prices remained stable at ₹93,500 per kg, indicating a disparity in demand between the two precious metals.

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Increased Local Demand: Local jewelers are ramping up purchases to meet the festive season’s demand, significantly impacting gold prices.

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Global Market Influence: The rally in gold prices can also be attributed to movements in the international markets. Gold futures on the Comex rose by 0.43% to reach $2,703 per ounce, reflecting global trends.

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In the futures market on the Multi Commodity Exchange (MCX), gold contracts for December delivery saw a rise of ₹355, or 0.46%, hitting a lifetime high of ₹77,019 per 10 grams.

Silver Futures: Conversely, silver futures for December delivery fell by ₹181, or 0.2%, settling at ₹92,002 per kg.

Several market analysts have commented on the driving forces behind the recent gold rally:

Jateen Trivedi, VP of Research at LKP Securities, noted, “Gold prices extended their rally, with gains in MCX marking all-time highs. This is primarily due to growing uncertainty regarding the returns of riskier assets, making gold a more attractive investment option.”

Manav Modi, Senior Analyst at Motilal Oswal Financial Services, stated, “Gold’s advance towards record highs is supported by the weakness in US bond yields and anticipated rate cuts by major central banks, alongside safe-haven demand due to ongoing geopolitical tensions.”

Saumil Gandhi, Senior Analyst at HDFC Securities, added that gold’s recent rally is supported by positive outlooks from the London Bullion Market Association (LBMA) and an overall safe-haven demand.

The surge in gold prices is also reflective of broader global economic trends:

The European Central Bank is expected to announce another rate cut, further supporting gold prices.

A decrease in inflation suggests that the Bank of England may also consider rate cuts in the near future, contributing to the bullish sentiment surrounding gold.

Gold prices have reached unprecedented heights amid increased festive demand and favorable global market conditions. With local jewelers ramping up purchases and global trends influencing prices, gold remains a key investment for many, particularly as uncertainties in riskier assets loom. As the festive season approaches, continued interest in gold may drive prices even higher, with analysts predicting a sustained upward trajectory. Investors will closely monitor upcoming macroeconomic data, including U.S. retail sales and jobless figures, for further insights into market movements and potential Federal Reserve policy adjustments.

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