Gold Price Crosses Rs 76,500 In Retail Market On Pre-Diwali Demand, Positive Global Cues
Multi Commodity Exchange (MCX) December contracts for gold are trading higher at Rs 76,641 per 10 grams amid positive global cues, while silver prices reached Rs 91,254 per kilogram.
Gold price crossed Rs 76,500 in the Indian retail market on Wednesday, as demand is poised to pick up ahead of the upcoming Diwali festivities. The price per 10 grams of 24-karat gold rose by Rs 572, or 0.7%, to Rs 75,602, according to the pan-India rates shared by the India Bullion and Jewellers Association Ltd.
The metal had settled at Rs 75,930 per 10 grams on Tuesday.
Gold price in India also picked up at the Multi Commodity Exchange in the backdrop of positive global gold rates. The December contracts were trading Rs 281, or 0.37%, higher at Rs 76,641 per 10 grams as of 12:55 p.m.
In the global gold market, spot gold was trading 0.44% higher at $2,675 per ounce. On the COMEX, US gold futures were trading 0.47% higher at $2,691.4 an ounce.
The uptick was driven by increased expectations of a rate cut by the US Federal Reserve. The expectation of a 25 basis points cut in the benchmark lending rates has soared to 94.1%, as against 5.1% who expect a status quo, as per CME Group's FedWatch.
A reduction in lending rates leads to more liquidity in the economy, which in turn raises the demand for gold, seen as one of the top safe-haven assets.
Silver price in India is also edging higher, with the metal crossing the Rs 90,000-mark again in the retail market on Wednesday. The pan-India retail price stood at Rs 91,254, which is Rs 1,454, or 1.6%, higher compared to the price of Rs 89,800 on Tuesday.
Notably, buying gold and silver is considered auspicious by several Indians on the occasion of Diwali and Dhanteras. As the festive period approaches, a further rise in the gold price and silver price in India could likely be on the cards.
