Gold prices have surged to a historic high, surpassing Rs 1.3 lakh per 10 grams. This remarkable rise is attributed to various factors, including international economic conditions and the weakening Indian rupee.
Current Gold Prices in India
On Monday, the price of gold reached a peak of Rs 1,23,300 per 10 grams in Delhi. This represents an increase of Rs 2,700 from the previous rate. Market reports indicate that gold, with 99.9 percent purity, had closed at Rs 1,20,600 per 10 grams on Friday.
The gold market also saw the price of 99.5 percent pure gold climb by Rs 2,700, bringing it to Rs 1,22,700 per 10 grams, including taxes.
Factors Driving Gold Prices Higher
- International safe-haven investments
- Weakening Indian rupee against the dollar
- Economic uncertainties, including concerns over a US government shutdown
Saumil Gandhi, Senior Analyst at HDFC Securities, noted that the anticipation of further price increases continues to attract investors, despite the current high prices.
Silver Prices Also Rising
Silver has mirrored gold’s ascent, with prices increasing by Rs 7,400 to reach Rs 1,57,400 per kilogram. This marks an impressive rise of 75.47 percent since the end of December. Silver was priced at Rs 89,700 per kg at that time.
Global Market Trends
In global markets, spot gold has climbed nearly 2 percent, hitting $3,949.58 per ounce. Silver is also up over 1 percent, now trading at $48.75 per ounce.
Futures Market Highlights
Both gold and silver futures have reached record levels in domestic trading. On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by Rs 1,962, reaching Rs 1,20,075 per 10 grams. Silver futures for December delivery increased by Rs 2,233, pricing it at Rs 1,47,977 per kilogram.
Market Outlook
Analysts indicate ongoing global uncertainties are likely to keep gold and silver prices on an upward trajectory. Factors such as economic implications from the US government shutdown and key product releases from the Federal Reserve are crucial for market participants to monitor in the coming days.
Renisha Chainani of Augmont highlighted the presence of political and economic uncertainties that have fueled demand for gold as a hedging instrument. This year has seen unprecedented growth in precious metals, driven significantly by safe-haven demand.
