Dhanteras, Diwali and wedding interest season, gold and silver at record high amid ever increasing demand

New Delhi| Gold and silver prices rose for the sixth consecutive trading session in Delhi and reached new record levels due to increased demand ahead of Dhanteras, Diwali and wedding season. According to the All India Bullion Association, the price of gold rose by Rs 500 to an all-time high of Rs 81,500 per 10 grams, while the price of silver rose by Rs 1,000 to one lakh two thousand rupees per kilogram.

The price of gold of 99.9 per cent and 99.5 per cent purity rose by Rs 500-500 to Rs 81,500 per 10 grams and Rs 81,100 per 10 grams respectively. On Tuesday, the price of silver rose by Rs 1,000 to a new high of Rs 1.02 lakh per kg, whereas earlier the price of silver had closed at Rs 1.01 lakh per kg

Silver prices rose by Rs 10,000 per kg in the last six trading sessions. Gold prices have risen by Rs 2,850 per 10 grams since October 16. According to Narinder Wadhwa, managing director of SKI Capital, the reason why silver price reached Rs 1 lakh on bullion market and MCX is due to increased demand during the festive season and geopolitical risk arising from the ongoing conflict in West Asia.

Gold and silver prices in local markets had fallen by 7 percent in July after the government cut customs duties on imports of gold and other metals. Subsequent festivals, expectations of interest rate cuts in the US and increased geopolitical tensions led to increased demand among Indian consumers, leading to a surge in bullion prices.

In futures trading on MCX, the price of December delivery gold contracts rose by Rs 112, or 0.14 per cent, to Rs 78,768 per 10 grams. The precious metal jumped 263 rupees, or 0.33 per cent, to an all-time high of 78,919 rupees per 10 grams during trading.

Gold prices showed another positive trend due to the rise in Comex, and gold approached $2,750. This helped gold stay above Rs 78,750 on MCX. “The current favorable interest rate cycle has been the main reason supporting gold growth”, said Jatin Trivedi, vice president of commodity and currency segments at LKP Securities and Research Analyst Apart from this, Trivedi said that uncertainty regarding the outcome of the upcoming US presidential elections is also playing a role in keeping gold prices high.

Meanwhile, December delivery silver futures fell by Rs 456, or 0.46 per cent, to Rs 99,516 per kg. During the day’s trading, the price of Chadi on MCX rose by Rs 109, or 0.11 per cent, to near the all-time high of Rs 1,00,081 per kg. Globally, Comex gold futures were seen trading 0.17 percent higher at $2,764.50 an ounce. Gold prices hit persistently high levels, surpassing the $2,750 level.

According to Soumil Gandhi, Senior Analyst for Commodities, HDFC Securities, traders are getting attracted towards gold due to the current risk-free environment and the fear of increasing tension in West Asia, and investment in it is increasing.

In Asian markets, however, silver appeared to trade at $34.74 an ounce, down 0.86 percent. “Gold and silver saw strong acceleration, with gold prices hitting new highs, while silver hit a new 12-year high at $35 an ounce”, said Rahul Kalantri, vice president of commodities, Mehta Equities Ltd.