As the festival season begins in India, the demand for gold and silver inevitably rises, reflecting positively on their market prices. The festive sparkle brought by occasions like Raksha Bandhan and Janmashtami has significantly boosted the prices of these precious metals, leading to a notable uptick in the market. On Tuesday, both gold and silver prices closed at new highs, driven by increased demand from jewelers in anticipation of the upcoming festive shopping season.
Current Gold and Silver Prices in India
| Metal | Price (per 10 grams or per kg) | Price Change |
|---|---|---|
| 24 Carat Gold | ₹74,350 (10 grams) | +₹550 |
| Silver | ₹88,200 (per kg) | +₹1,200 |
| 22 Carat Gold | ₹74,000 (10 grams) | +₹550 |
Market Analysis
In the Delhi bullion market, the price of 24-carat gold surged to ₹74,350 per 10 grams, marking an increase of ₹550 from the previous session, where it closed at ₹73,800. Similarly, silver prices rose to ₹88,200 per kilogram, up by ₹1,200 from the previous day’s closing rate of ₹87,000 per kilogram. It is noteworthy that the bullion market remained closed on Monday in observance of the Krishna Janmashtami festival.
Impact of 22 Carat Gold Prices
Gold jewelry is primarily crafted from 22-carat gold, also known for its 99.5% purity. According to the All India Jewelers Association, prices for 22-carat gold in Delhi rose by the same ₹550, settling at ₹74,000 per 10 grams. Market insiders suggest that the increase in domestic demand from local jewelers and retailers due to the festive season is a key factor for this price rise.
Global Market Trends
In contrast to the positive trends in the domestic market, Asian markets are witnessing a decline in gold prices. Currently, gold is trading at $2,543.90 per ounce, reflecting a decrease of $11.30. Additionally, global silver prices have also seen a dip, now at $30.34 per ounce.
Economic Insights
Sourabh Gandhi, a senior analyst at HDFC Securities, notes that a better-than-expected economic report from the United States, coupled with rising US bond yields, contributed to the slight drop in gold prices recently. According to Manav Modi, a senior analyst (Commodity Research) at MOFSL, while a decline was observed, gold prices remained buoyant at record levels from the previous week. This is due to expectations of a potential reduction in US interest rates, which has weakened the dollar and provided a more favorable outlook for precious metals in the market.
Conclusion
Overall, as the festive season progresses, the increased demand for gold and silver is likely to keep prices volatile, reflecting the dynamics of local and global markets. Consumers and investors alike should stay informed about the evolving market trends, particularly how they align with economic indicators and festive buying patterns.
