Gold prices surged by Rs 300 to reach Rs 81,400 per 10 grams, nearing its all-time high, in the national capital on Tuesday fueled by significant demand ahead of Dhanteras from jewelers and retailers, as reported by the All India Sarafa Association.
Continuing Demand for Silver
Silver also witnessed a price increase of Rs 200 to Rs 99,700 per kg, driven by rising demand from industrial units and coin makers, surpassing its closing price of Rs 99,500 per kg on Monday.
It is interesting to note that silver coins are increasingly being preferred for token purchases during Dhanteras over traditional gold, likely due to the high prices of the latter.
Market Trends and Outlook
Gold of 99.5 per cent purity rose by Rs 300 to nearly touch its all-time peak of Rs 81,000 per 10 grams. The metal had closed at Rs 81,100 and Rs 80,700 per 10 grams for 99.9 per cent and 99.5 per cent purity respectively on Monday.
In the futures market on the Multi Commodity Exchange (MCX), gold contracts for December delivery saw a rise of Rs 178 or 0.23 per cent to Rs 78,744 per 10 grams, reflecting positive market sentiment.
“Gold prices on MCX remained upbeat with the festive occasion of Dhanteras spurring long positions. Increased buying activity on this auspicious day has driven prices higher on the MCX and above Rs 80,000 in the physical jewellery market,” noted Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
Silver contracts for December delivery also saw an uptick, rising by Rs 786 or 0.81 per cent to Rs 98,210 per kg on the MCX.
Global Trends and Factors Influencing Prices
Internationally, Comex gold futures climbed 0.23 per cent to USD 2,762.20 per ounce, inching closer to a record high.
“Gold prices saw gains during European trading hours on Tuesday due to concerns surrounding the US Presidential election and the escalating US debt crisis, leading to increased safe-haven demand and investment flows into the precious metal,” mentioned Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Pranav Mer, VP – Research (Commodity & Currency) at BlinkX and JM Financial, highlighted that gold has been trading positively with buying seen at every minor correction in the past three trading sessions.
(With PTI inputs)
