NEW DELHI: Gold prices surged by Rs250 on Monday, reaching a new all-time high of Rs78,700 per 10 grams, driven by steady buying from jewellers and robust trends in international markets. This marks an increase from Friday’s close of Rs78,450 per 10 grams.
In contrast, silver prices saw a decline, slipping by Rs200 to Rs94,000 per kg, down from Rs94,200 per kg, according to the All India Sarafa Association.
Gold of 99.5 per cent purity also rose, climbing Rs200 to hit a record high of Rs78,300 per 10 grams, compared with Rs 78,100 in the previous session. Traders attributed the rise in gold prices to increased domestic demand from stockists and retailers, along with weakening equity markets, which led investors to seek safe-haven assets like gold.
In the Asian market, Comex gold traded 0.14 per cent higher at $2,671.50 per ounce during early trading hours.
“Gold prices on the COMEX remain stable as mixed signals from the US Federal Reserve about potential interest rate cuts balance out the safe-haven demand spurred by ongoing tensions in the Middle East. Gold may continue to trade in a narrow range as investors exercise caution ahead of the release of US inflation data,” said Kaynat Chainwala, AVP-Commodity Research at Kotak Securities.
Silver declines 0.61%
Meanwhile, silver fell 0.61 per cent in the international market, trading at $32.20 per ounce. According to Manav Modi, Senior Analyst for Commodity Research at Motilal Oswal Financial Services Ltd, expectations for a 50 basis points interest rate cut in November have been scaled back, while rising geopolitical tensions in the Middle East are increasing the risk premium for bullion prices.
Pranav Mer, Vice President of Commodity & Currency Research at JM Financial Services, pointed out that key events to watch this week include the US Consumer Price Index (CPI) and consumer sentiment data, as well as developments in the Middle East, which are likely to influence gold price movements.
