Friday, November 22, 2024
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Golden Rush: Gold price soars past Rs82,000-mark

Spike in gold prices was attributed to robust buying by jewellers ahead of Diwali and firm global cues

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NEW DELHI: Gold prices saw a sharp rise of Rs1,000, surpassing the significant Rs82,000 per 10-gram mark in the capital on Wednesday due to strong Diwali demand.

According to the All India Sarafa Association, 99.9 per cent pure gold reached a record high of Rs82,400 per 10 grams in Delhi, while 99.5 per cent pure gold rose to an all-time high of Rs82,000. In the previous session, prices closed at Rs81,400 and Rs81,000 for the two purities, respectively.

The spike in gold prices was attributed to robust buying by jewellers ahead of Diwali and firm global cues amid geopolitical uncertainty leading up to the US presidential elections. At Rs82,400 per 10 grams, gold has risen by 35 per cent since October 29 last year, when it was at Rs61,200.

Silver prices

Silver prices also continued their ascent, climbing Rs1,300 to Rs1,01,000 per kg, extending a five-day rally. This marks a 36 per cent increase since October 29 last year, when it stood at Rs74,000 per kg.

On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by Rs444, or 0.56 per cent, to Rs79,677 per 10 grams, peaking at Rs79,775.

“Gold remains buoyant on festive demand in India, alongside market bets leaning towards a Trump victory in the upcoming US. elections, adding liquidity to gold markets,” noted Jateen Trivedi, VP and Research Analyst at LKP Securities. Trivedi emphasised gold’s strong outlook for additional gains amid festive season buying.

December silver contracts on the MCX fell slightly by Rs45 to trade at Rs98,685 per kg.

Comex gold futures

Globally, Comex gold futures were up 0.60 per cent to $2,797.90 per ounce. “Gold reached a new high during European hours, helped by lower US Treasury yields and a weaker dollar,” remarked Saumil Gandhi, Senior Commodity Analyst at HDFC Securities.

Investors are also focused on US data releases, including employment figures and advance GDP, which could signal shifts in Federal Reserve interest rate policy, Gandhi added.

Manav Modi, Analyst at Motilal Oswal Financial Services Ltd, explained that record-high gold prices reflect heightened safe-haven demand due to US and Japanese political uncertainties. The anticipation of a tight US presidential election on November 5 is also supporting safe-haven assets, Modi said.

Beyond US elections, Middle Eastern tensions remain in focus, particularly as Iran has vowed retaliation against Israel’s recent strike.

Asian markets saw Comex silver futures trading flat at $34.45 per ounce. Though consumer confidence data was stronger than expected, its impact on metals was limited amid broader geopolitical concerns, Modi concluded.

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