Gold and silver prices in the national capital have reached unprecedented heights due to the ongoing wedding season and festive demand.
Silver prices have surged by Rs 10,000 per kilogram over the last six trading sessions, while gold has also seen significant gains. Gold prices have climbed to an all-time high of Rs 81,500 per 10 grams, marking a Rs 500 increase, while silver has jumped to Rs 1.02 lakh per kg, up by Rs 1,000 from the previous day.
The rise in gold prices reflects a broader trend in the market, with prices increasing by Rs 2,850 per 10 grams since October 16. This surge is attributed to a combination of seasonal demand in India and external factors such as geopolitical tensions in West Asia. Market analysts have pointed to multiple converging factors that have contributed to the current bullish sentiment in the precious metals market.
The ongoing conflict in West Asia has heightened uncertainty, prompting investors to seek safe-haven assets like gold and silver. The current dynamics in the gold market are also influenced by expectations surrounding U.S. economic policies, particularly the anticipation of rate cuts. The uncertainty surrounding the upcoming U.S. Presidential elections adds another layer of complexity to the market.
With the festive season in full swing, Indian consumers are increasingly turning to gold and silver for both investment and ceremonial purposes. The recent price movements in gold and silver have elicited varied reactions from market participants. While some investors are capitalizing on the current highs, others are cautious, considering the potential for price corrections in the future.
The demand for precious metals is likely to remain strong as the wedding season progresses and festive celebrations continue. However, external factors, including changes in U.S. monetary policy and geopolitical tensions, could impact price stability.