Gold and Silver Price has set a new record before Diwali
Gold Silver Price: Gold and silver prices rose for the sixth consecutive trading session. Both have made their new all-time high. The price of silver crossed 1 lakh for the second consecutive trading session. Gold and silver prices have risen due to the demand of festive and wedding season. According to experts, the prices of gold and silver may remain high in the coming days as well.
The ever-continuing trend of record rise in the prices of yellow metals-cum-jewelleries continued. Both precious metals have turned dearer for the sixth straight trading session. Gold price further surged Rs 500 to all-time high at Rs 81,500 per 10 grams while silver shot up Rs 1,000 to Rs 1.02 lakh per kg on Tuesday.
This is also a record of silver so far. The price of silver has gained Rs 10,000 per kg in the last six trading sessions. Meanwhile, the price of gold has increased by Rs 2,850 per 10 grams since October 16.
According to the All India Sarafa Association, gold and silver prices increased on account of demand due to festive and wedding seasons. As per Narinder Wadhwa, MD, SKI Capital, there could be a host of reasons for silver reaching Rs 1 lakh in the physical market and MCX. The reasons include seasonal demand in India and geopolitical risks from the West Asia conflict.
The government had reduced the basic customs duty on gold and other metals in July. Local markets then showed a sharp 7 percent fall in prices of gold and silver. Factors such as the ongoing festive season, expectation of rate cuts in the US along rising geopolitical tensions have once again increased the prices of gold and silver.
In the view of Jatin Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, "The biggest reason for the rise in gold is the interest rate cycle. Uncertainty over the results of the upcoming US presidential elections is also playing a role in keeping gold prices high."
As per Saumil Gandhi, Senior Analyst-Commodities, HDFC Securities, "Investors are betting on gold amidst a volatile environment. "Besides, possibilities of further escalation in the Middle East tensions are also drawing traders to gold and hence the price of gold is rising.
Gold and silver have performed very strongly. The prices of gold reached new highs while silver has reached a new 12-year high at US$ 35 an ounce," said Rahul Kalantri, Vice President, Commodities at Mehta Equities Limited. Silver, which opened in the green, fell 0.86 per cent to US$ 34.74 an ounce in the Asian market. During the day, it touched a new peak of US$ 35.055 an ounce.
Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said, "Investors are turning to gold in an environment of instability. At the same time, the possibility of further escalation of tensions in the Middle East is also pulling traders towards gold. This is leading to a rise in the price of gold."
