Similarly, 22K gold rose by ₹470, now priced at ₹71,560 per 10 grams.
The upcoming Dhanteras and Diwali festivals are driving this demand as consumers traditionally purchase gold during this auspicious time.
Globally, gold is trading close to its all-time highs, buoyed by uncertainty surrounding the US elections and the expectation of interest rate cuts from major central banks.
As of Thursday (October 17), spot gold rose 0.3% to $2,682.14 per ounce, with US gold futures gaining 0.2% to $2,697.40.
This follows a session high of $2,685.16 per ounce on Wednesday (October 16), just shy of the previous record of $2,685.42 per ounce achieved on September 26.
The geopolitical landscape is contributing to gold’s appeal as a safe-haven asset.
Analysts note that uncertainties around a potential Trump presidency could heighten trade tensions and increase the US budget deficit, further driving investors toward gold.
OANDA’s senior market analyst for Asia Pacific, Kelvin Wong, remarked that if the retail sales data falls short of expectations, it could propel gold prices even higher.
Central banks are also influencing gold’s trajectory.
There’s a 92% likelihood of a 25-basis-point rate cut by the US central bank next month, as indicated by the CME FedWatch tool.
The European Central Bank is expected to lower rates again, citing better control over eurozone inflation. In the UK, a sharp decline in inflation has supported predictions for a Bank of England rate cut next month.
Lower interest rates generally enhance gold’s allure, as bullion yields no interest.
Market analysts observe that while gold has maintained its upward momentum, caution is warranted.
Renisha Chainani, Head of Research at Augmont, stated that the metal is testing its all-time high amid geopolitical tensions and rate cut expectations.
The recent escalation of conflict in the Middle East has added to this uncertainty, supporting investments in gold.
Despite these factors, some market indicators suggest gold prices may be overbought, with weekly and monthly Relative Strength Index (RSI) levels above 80.
Sandip Raichura, CEO of PL Broking and Distribution, cautioned that these technical signs historically precede price corrections.
However, he remains optimistic about gold’s outlook and highlighted potential support at the $2,550 per ounce level for mid-term bullish positions.