The festive season in India has ushered in a significant spike in gold prices, with the price per 10 grams crossing ₹82,000 in the national capital, Delhi. According to the All India Sarafa Association, the price of 99.9% pure gold has reached an all-time high of ₹82,400 per 10 grams, marking an increase of ₹1,000 in a single day. This surge underscores the increased demand for gold as Diwali approaches, while also reflecting global geopolitical factors.
Factors Driving the Gold Price Surge
The sharp rise in gold prices in Delhi has been attributed to multiple factors. Local jewelers are ramping up purchases to meet the high demand during Diwali, which traditionally sees a surge in gold buying across India. Additionally, the upcoming U.S. presidential elections are adding uncertainty to global markets, resulting in a shift towards safe-haven assets like gold.
A key contributor to this price rise has also been the fluctuating U.S. dollar and Treasury yields, which has bolstered demand for gold. HD Securities Senior Analyst Saumil Gandhi explained that, amid declining U.S. Treasury yields, gold has continued to climb and is likely to hold this momentum as uncertainty persists in international markets.
Silver Prices Also Surge Amid High Demand
In addition to gold, silver prices have surged for the fifth consecutive day, jumping by ₹1,300 to reach ₹1.01 lakh per kilogram in Delhi. This represents a notable 36% increase from previous levels, with prices recently recorded at ₹74,000 per kilogram. Silver’s value has been boosted by both local demand and strong global market performance, which has seen continued growth despite fluctuating currency values.
Gold and Silver Futures on the MCX
On the Multi Commodity Exchange (MCX), gold futures for December delivery have also hit record highs. December contracts rose by ₹444, or 0.56%, to ₹79,677 per 10 grams. During trading hours, prices spiked by ₹542, reaching a high of ₹79,775 per 10 grams. Internationally, COMEX gold futures were up by 0.60%, trading at $2,797.90 per ounce, reflecting robust investor demand for gold in response to economic and political uncertainty.
Meanwhile, December silver futures on the MCX saw a minor dip of ₹45, trading at ₹98,685 per kilogram, even as spot demand remains strong.
Delhi Gold and Silver Prices Breakdown
- Gold (99.9% purity): ₹82,400 per 10 grams
- Silver: ₹1,01,000 per kilogram
The rise in gold and silver prices highlights the influence of both local and global factors on the precious metals market. With demand expected to remain high through the Diwali season and into the end of the year, analysts predict that gold and silver may continue their upward trend amidst ongoing market volatility.
