Gold Prices in India Near Record High: Festive Demand and Safe-Haven Buying Drive Rates
Gold prices in India are trading near record highs, driven by festive demand and safe-haven buying. According to the India Bullion Association, gold prices held steady at Rs 1,13,170 per 10 gm, compared to Rs 1,14,360 on Thursday.
Festive Demand and Safe-Haven Buying
The current surge in gold prices can be attributed to the festive demand and safe-haven buying. The Indian festive season, which includes Diwali and other significant festivals, typically sees a surge in gold buying. Additionally, the ongoing economic uncertainty and geopolitical tensions have led to an increase in safe-haven buying, driving up gold prices.
US Federal Reserve Meeting and Gold Prices
The US Federal Reserve meeting last week had a significant impact on gold prices. The Fed’s decision to keep interest rates steady led to a surge in gold prices, with the commodity hitting a fresh high of $3,707.57 ahead of the meeting. However, gold prices slipped further last week after the meeting, but have since recovered and are now trading near record highs.
Market Analysts’ Views
Market analysts are optimistic about the long-term prospects for gold. According to Anuj Gupta, a market and commodities expert, the Fed’s action was largely anticipated and is expected to support a positive trend for the precious metal. “As the labour market and inflation are still a cause of concern for the Fed, they want to keep an eye on the data. The trend of gold is looking positive for the longer term,” Gupta stated.
Gold Prices in Major Cities
In New Delhi, the price of gold stood at Rs 1,12,790 per 10 gm, while in Mumbai, it stood at Rs 1,12,980 on Friday. In Bengaluru, the rate stood at Rs 1,13,070, while in Kolkata, it was Rs 1,12,830 per 10 gm. The price of gold was the highest in Chennai, trading at Rs 1,13,310 per 10 gm.
Futures and Spot Prices
The Dec. 5 futures stood at Rs 1,13,869 according to the Multi-Commodity Exchange. The spot prices of the yellow metal rose to $3,743 on Friday, according to the World Gold Council. The precious metal’s price rose to Rs 1,36,720 per kilogram, according to the India Bullion Association.
Silver Prices
Oct. 5 futures for silver were trading higher at Rs 1,36,738, according to the Multi Commodity Exchange.
For investors looking to invest in gold, it is essential to keep an eye on the market trends and economic indicators. Investing in gold can be a lucrative option, but it is crucial to do thorough research and consult with a financial advisor before making any investment decisions.
In conclusion, gold prices in India are trading near record highs, driven by festive demand and safe-haven buying. With the ongoing economic uncertainty and geopolitical tensions, it is likely that gold prices will continue to rise in the near term. However, it is essential for investors to keep an eye on the market trends and economic indicators to make informed investment decisions.