New Delhi, October 23, 2024: Gold prices surged by Rs 350 on Tuesday, reaching an all-time high of Rs 81,000 per 10 grams, while silver climbed by Rs 1,500 to breach the Rs 1 lakh mark, according to the All India Sarafa Association. This sharp rise comes as demand for precious metals continues to soar in the national capital.
Silver prices extended their upward streak for the fifth consecutive day, jumping Rs 1,500 to hit a fresh peak of Rs 1.01 lakh per kilogram, following Monday’s close of Rs 99,500 per kg.
“The current surge in silver prices is largely driven by industrial demand, particularly in expanding photovoltaic applications, followed by the jewellery and silverware segments,” said Arun Misra, CEO and Whole-time Director at Hindustan Zinc Ltd.
Jateen Trivedi, VP Research Analyst for Commodity and Currency at LKP Securities, noted the fast-paced rally in silver prices, which have surpassed Rs 1 lakh in Indian markets. “The momentum suggests that silver prices could reach Rs 1.1 lakh before Diwali,” Trivedi added.
Gold also saw significant movement, with 99.5% purity gold increasing by Rs 350, hitting a new high of Rs 80,600 per 10 grams. Gold of 99.9% purity finished at Rs 80,650 per 10 grams on Monday, continuing its bullish trend.
Bullion traders attributed the spike in precious metal prices to rising consumption in both industrial and wearable segments, alongside global economic concerns. “The growth slowdown in China, along with escalating geopolitical tensions in West Asia, and most global central banks maintaining the status quo on interest rates, have all contributed to the rise in bullion demand,” traders explained.
In the futures market, gold contracts for December delivery on the Multi Commodity Exchange (MCX) rose by Rs 208, or 0.27%, to Rs 78,247 per 10 grams. Trivedi noted that gold prices on MCX have been consistently climbing, driven by persistent demand. “With the current risk barometer high, the demand for bullion is expected to push gold prices even higher in the near term,” he said.
Silver futures for December delivery on the MCX climbed Rs 882, or 0.91%, to Rs 98,330 per kg, maintaining the upward trend in the bullion market.
Internationally, gold prices also hit a record high. Comex gold futures rose 0.30% to USD 2,747.10 per ounce during Asian market hours. “Gold prices edged higher as investors are closely watching the BRICS Summit, where Russia aims to challenge the dominance of the US dollar with a new global financial payment system,” said Kaynat Chainwala, AVP-Commodity Research at Kotak Securities.
Silver on the Comex market followed suit, rising nearly 1% to USD 34.41 per ounce.
The ongoing rally in precious metals is further fueled by geopolitical uncertainty and macroeconomic factors. “Gold prices continued to climb on Monday, driven by concerns over the US election and heightened tensions in the Middle East, particularly in anticipation of Israel’s retaliation against Iran,” explained Manav Modi, Senior Analyst for Commodity Research at Motilal Oswal Financial Services Ltd.
Modi said that despite the dollar hovering near its highest levels since early August, gold remains attractive to investors seeking a safe haven. “Even with a strong dollar, the anticipation of a slower pace of interest rate cuts by the US Federal Reserve is keeping bullion prices on the rise,” he said.
This week, attention will be on key global events, including the International Monetary Fund (IMF) meetings, preliminary manufacturing and services PMI reports from major economies, U.S. durable goods orders, and comments from Federal Reserve officials. “These developments will play a critical role in shaping the trajectory of bullion prices in the near term,” Modi concluded.
