gold and silver prices
– Photo: amarujala.com
Expansion
According to All India Bullion Association, due to continued buying by jewelers, the price of gold in the national capital on Wednesday rose by Rs 250 and touched a new all-time high of Rs 78,900 per 10 grams. In the last session on Tuesday, this precious metal had closed at Rs 78,650 per 10 grams.
During this period, silver also rose by Rs 1,000 to Rs 93,500 per kg due to fresh buying by industrial units and coin makers. On Tuesday, silver closed at Rs 92,500 per kg.
At the same time, the price of gold of 99.5 percent purity rose by Rs 250 to a new record high of Rs 78,500 per 10 grams, whereas in the previous session it had closed at Rs 78,250 per 10 grams.
Traders said the rise in gold prices was due to strong demand from local jewelers. Additionally, the decline in stock markets also boosted gold prices as investors turned to safe haven assets.
Gold contracts for December delivery rose by Rs 268, or 0.35 per cent, to Rs 76,628 per 10 grams in futures trade on the Multi Commodity Exchange (MCX). On the exchange, the futures price of silver for December delivery increased by Rs 580, or 0.63 percent, to Rs 92,203 per kg.
Jatin Trivedi, Vice President Research Analyst – Commodity and Currency, LKP Securities, said, “Gold prices continued to rise with gains in MCX, while Comex gold was seen trading above $ 2,675. Traders are hopeful that the Federal Reserve will reduce interest rates. “Will stick to our stance of reduction.”
This has maintained bullish sentiment towards the yellow metal, which reached a record high in September. Trivedi said gold has since been stabilizing in the low to mid-$2,600 an ounce range as traders anticipate a slow pace of interest rate cuts by the Fed.
In international markets, Comex gold futures rose 0.51 percent to $ 2,692.50 an ounce. Manav Modi, Senior Analyst, Commodity Research Segment, Motilal Oswal Financial Services Ltd, said, “Governor Christopher Waller has supported a cautious stance of further rate cuts in the coming months, citing recent signs of resilience in the US economy and stable inflation. Have done.”
According to commodity experts, lower expected interest rates are positive for gold prices as it increases people's inclination towards the non-interest paying asset. Rising geopolitical tensions and the approaching US presidential election add to uncertainty in global markets, providing strong support to the yellow metal. He said Fed officials are divided on how much interest rate cuts they will make by the end of the year. Investors are keeping an eye on what the final outcome on interest rates will be.
In the Asian market, silver rose 0.91 percent to $ 32.05 an ounce. Modi said this week traders' focus will be on US retail sales, industrial production (IIP) and China's gross domestic product (GDP) data, which will provide information about the direction of bullion prices in the near future.
