Gold and Silver Prices Reach Record Highs
Gold price surged by Rs 350 to reach an all-time high of Rs 81,000 per 10 grams, while silver also saw a significant increase, climbing Rs 1,500 to hit the Rs 1 lakh mark in the national capital. This surge in prices can be attributed to a surge in demand, according to the All India Sarafa Association.
Industrial Demand Driving Silver Prices
Silver prices have been on the rise for the past five days, reaching a high of Rs 1.01 lakh per kg, driven by industrial demand. Arun Misra, CEO of Hindustan Zinc Ltd, stated that the current momentum in silver prices is fueled by industrial applications like photovoltaics, followed by the jewelry and silverware sectors.
Prediction of Further Increase in Silver Prices
Jateen Trivedi, VP Research Analyst at LKP Securities, noted that silver prices are expected to continue their rapid upward momentum, with predictions that prices could reach Rs 1.1 lakh before Diwali. This suggests a bullish trend for silver in the near term.
Gold Prices Also Rise
In addition to silver, gold prices jumped by Rs 350 to hit a new high of Rs 80,600 per 10 grams. The surge in prices for both gold and silver is attributed to increased consumption in industrial and wearable segments in the domestic market.
Factors Affecting Precious Metals Market
The jump in precious metal rates can also be linked to growing concerns about global economic growth, especially in China, as well as escalating geopolitical tensions in West Asia. Moreover, the decision by most global central banks to keep interest rates unchanged has contributed to the rise in metal prices.
Future Outlook for Gold and Silver Prices
In the futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery rose by 0.27% to Rs 78,247 per 10 grams, while silver contracts for December delivery climbed by 0.91% to Rs 98,330 per kg. Market participants will be closely monitoring developments in interest rates, global conflicts, and macroeconomic data, as these factors will play a crucial role in shaping the trajectory of gold and silver prices in the future.
Global Factors Driving Gold Prices
In the international market, Comex gold futures reached a new record high of USD 2,747.10 per ounce, reflecting investor interest in the BRICS Summit where Russia aims to challenge US dollar dominance with a new global financial payment system. Similarly, silver Comex futures also rose by nearly 1% to USD 34.41 per ounce.
Anticipation of Continued Bullish Trend
Despite the prevailing uncertainty over the US election and potential geopolitical tensions, gold prices have been on a continuous rise. Major economic events such as the IMF meetings, manufacturing and services PMI releases, and US durables goods orders are expected to impact bullion prices in the near future, as indicated by analysts at Motilal Oswal Financial Services Ltd.
