Gold Price Rally Eases Slightly while Stock Market Tanks Ahead of Dhanteras & Diwali
Gold Rates in Delhi
In Delhi, gold rates dropped slightly to ₹79,763.0 for 10 grams on Saturday, October 26, 2024, compared to ₹80,253.0 for 10 grams the day before. Just last week, on October 20, 2024, the price was ₹79,593.0 for 10 grams. The slight dip in gold prices comes at a time when many are preparing for Dhanteras on October 29, 2024, and Diwali starting on October 31, 2024.
Insight: Factors Affecting Gold Prices
The current prices of gold have surged by 30% compared to the same period last year. This escalation can be largely attributed to various geopolitical tensions, including conflicts like the Russia-Ukraine war and the Israel-Gaza conflict. Additionally, decisions made by China’s central bank, such as reducing its 1-year and 5-year prime loan rates by 25 basis points, have also impacted the surge in gold prices.
Stock Market Performance
Conversely, the stock market experienced a significant downturn this week. The benchmark BSE Sensex closed at 79,402.29, marking a decline of 662.87 points or 0.83%. The NSE Nifty fared even worse, closing at 24,180.80, with a drop of 218.60 points or 0.9%.
Insight: Sectoral Impact
IndusInd Bank Ltd, Adani Enterprises Ltd, and Bharat Petroleum Corporation Ltd were among the companies that encountered substantial losses, with drops of 18.99%, 4.90%, and 4.82% respectively. While most NSE sectoral indices closed in the red, some sectors like FMCG, PSU Banks, Healthcare, and MidSmall Healthcare managed to stay afloat. Notably, Consumer Durables saw the most significant decline at 2.60%, followed by Oil & Gas at 2.54%, and Metal at 2.42%.
The challenging week in both the gold market and stock market signals a period of fluctuation as the festive season approaches.
