Gold Price Above Rs 77,000 Mark, Silver Also Sees Spike
The fluctuations in gold and silver prices are heavily influenced by the wedding season.
Despite a slight cooling down in precious metal demand after the festive season, both gold and sliver rates spiked a little on Monday.
During early morning hours, 24 karat gold was trading at Rs 77,790 per 10 grams, according to the India Bullion and Jewellers Association Ltd (IBJA). This slight uptick comes as both metals have been hovering near their all-time highs, driven by global uncertainties and investor belief in safe-haven assets.
Demand for these precious metals spiked to near record high earlier this month as the Hindu festivals Diwali and Dhanteras were celebrated, onsetting the Hindu new year.
The price of silver has also seen a spike, trading at Rs 91,230 per kilogram.
The fluctuations in gold and silver prices are heavily influenced by the wedding season also, which further fuels demand from local jewellers as they prepare to stock up for the festivities.
The average price of 22K gold stands at Rs 71,250, while the 24K variety is priced at Rs 77,790. Prices can vary across regions; for instance, in Delhi, 10 grams of 24K gold is priced at Rs 76,960, while in Jaipur, it reaches Rs 77,080, and in Chennai, the price is slightly higher at Rs 77,320, as per India Bullion.
For silver, the average price per kilogram is approximately Rs 90,110, with minor regional variations. In Chennai and Hyderabad, silver prices are at Rs 90,210 and Rs 90,090, respectively, while in Delhi and Mumbai, they stand at Rs 89,790 and Rs 89,940.
The current market dynamics are also shaped by rising inflation, which has made gold a more attractive investment option. Additionally, geopolitical tensions, particularly in West Asia, have led to increased safe-haven buying of precious metals.
Fluctuations in gold and silver prices are influenced by a range of factors, including global demand trends, currency valuations, interest rates, and government policies on gold trade. Broader macroeconomic conditions, including the overall health of the world economy and the strength of the US dollar, also play significant roles in determining prices in the Indian market.
