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"Gold Prices Surge on Dhanteras, Approaching Record Highs"

  • 29 Oct 2024 10:28 AM
  • gold prices, economic trends

On Tuesday, gold prices saw a significant rise, increasing by ₹300 to reach ₹81,400 per 10 grams in the national capital. This surge is attributed to the heavy demand from jewellers and retailers ahead of Dhanteras, a festival known for its traditional gold purchases, as reported by the All India Sarafa Association.

Silver also experienced a boost, climbing by ₹200 to ₹99,700 per kg, driven by rising demand from industrial units and coin makers. The previous day, silver was priced at ₹99,500 per kg, reflecting a growing trend of consumers opting for silver coins instead of gold due to escalating gold prices.

Notably, gold with 99.5% purity jumped to near its all-time peak, with previous closing prices for 99.9% and 99.5% purity gold at ₹81,100 and ₹80,700 per 10 grams, respectively.

In the futures market on the Multi Commodity Exchange (MCX), gold contracts for December delivery appreciated by ₹178, or 0.23%, to ₹78,744 per 10 grams. Jateen Trivedi, VP Research Analyst at LKP Securities, noted that the Dhanteras festivities encouraged increased buying, which has helped maintain positive gold prices in both the MCX and physical jewellery markets.

Silver futures for December delivery also saw a rise, bouncing ₹786, or 0.81%, to ₹98,210 per kg on the MCX.

On the global front, Comex gold futures rose by 0.23% to USD 2,762.20 per ounce. Saumil Gandhi, Senior Analyst at HDFC Securities, highlighted that concerns surrounding the upcoming US Presidential election and the escalating US debt crisis are fueling safe-haven demand for gold, leading to increased flows into the precious metal.

Pranav Mer, VP of Research at BlinkX and JM Financial, confirmed that gold continues to show positive trading patterns, with buying activity occurring at every small correction over the past three trading sessions.