The price of 24-carat gold increased by Rs 10 during early trading on Saturday, with ten grams of the valuable metal valued at Rs 78,990, as reported by the GoodReturns website. Furthermore, the price of silver also saw a rise of Rs 100, with one kilogram of the precious metal trading at Rs 99,100.
There was also a Rs 10 increase in the price of 22-carat gold, with ten grams of the gold being sold at Rs 72,410. The price of ten grams of 24-carat gold in Mumbai was consistent with rates in Kolkata, Bangalore, Chennai, and Hyderabad, at Rs 78,990. In Delhi, the price of ten grams of 24-carat gold was recorded at Rs 79,140.
Moreover, in Mumbai, the price of ten grams of 22-carat gold was in line with prices in Kolkata, Bangalore, Chennai, and Hyderabad, at Rs 72,410. In Delhi, the price of ten grams of 22-carat gold was reported at Rs 72,560.
The price of one kilogram of silver is consistent across major cities in India, with Delhi, Mumbai, Kolkata, and Ahmedabad all at Rs 96,900. In contrast, the price in Chennai is slightly higher at Rs 1,05,100 per kilogram.
The MCX gold rate reached a historic high of Rs 77,839 per 10 gm during Friday’s transactions, while the spot gold price hit a new peak of $2,722 per troy ounce.
Spot gold was up 1 per cent at $2,720.05 per ounce by 02:58 p.m. ET (1858 GMT) and has risen 2.4 per cent so far this week.
Spot silver rose 6 per cent to $33.58. Platinum added 2.4 per cent to $1,016.25 and palladium gained about 4 per cent to $1,083.25.
Based on analysis from experts in the commodity market, the current surge in gold prices is attributed to geopolitical instability, the possibility of additional interest rate reductions, and the upcoming US Presidential election. The experts suggest that this uncertainty will persist until the results of the Presidential election are announced.
Conversely, the demand for physical gold in the local market is projected to rise leading up to Diwali 2024. Consequently, investors in gold face a challenging task of deciding when to book profits from their investments.
“Gold prices continued their strong upward momentum, with a sharp rise of Rs 500 in MCX, taking the price to Rs 77,600, supported by Comex gold surging above $2,710. This robust strength is largely driven by the expectation of ongoing interest rate cuts in the US, with further reductions anticipated in the near future. The broader trend in MCX gold has been distinctly positive since it hit lows below Rs 68,000 earlier in the year, and the current rally to above Rs 77,500 represents a significant appreciation,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
“For 2024, gold has already delivered impressive returns of over 22%, and on a Diwali-to-Diwali basis, returns have reached nearly 30%. This makes gold one of the standout performers for the year. Looking ahead, the price momentum remains strong, with a potential upside target of Rs 78,500 in the coming sessions. On the downside, the key support level is seen around Rs 75,000, providing a solid base for any short-term pullbacks. As long as the interest rate cut expectations and geopolitical tensions persist, the bullish outlook for gold should remain intact,” Trivedi said.
“Gold prices have skyrocketed to another record high, reaching $2,722 per ounce in international markets and ₹77,839 per 10 gm at the domestic markets, driven by geopolitical uncertainty, potential further interest rate cuts, and the looming US Presidential election. Given current trends and upcoming events that could impact gold prices, the question of whether it’s wise to buy gold before Diwali 2024 and hold until after the US Presidential election is timely,” said Sugandha Sachdeva, Founder of SS WealthStreet.