Gold prices have remained stable at Rs 78,545 per gram as of today. This year, gold has reached a historic high, achieving the largest annual increase in 45 years. The surge is driven by ongoing geopolitical tensions in the Middle East and expectations of potential rate cuts by the US Federal Reserve. Internationally, gold prices have risen by over 32.5% this year, the highest increase since 1979. Meanwhile, silver has climbed 37.5%.
In India, gold on the MCX has increased by 23.6%, and silver prices have jumped by 32.9%, marking their biggest gains since 2020. The strong performance of silver is largely due to industrial demand, particularly from the renewable energy and electric vehicle sectors, alongside growing investment interest. Analysts predict that silver may continue to rise, supported by hopes for a recovery in the Chinese economy and ongoing supply-demand imbalances.
The increase in precious metals can be attributed to several factors, including robust consumer demand, a weaker US dollar, and heightened purchasing by central banks in emerging markets.
Despite recent market volatility impacting equities—both Sensex and Nifty are down over 5%—the outlook for precious metals remains optimistic. The upcoming festive season is expected to boost demand for gold jewelry in India, while silver continues to benefit from industrial needs.
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