Gold and silver prices surged in Delhi’s bullion market on Wednesday, just ahead of Dhanteras, as festive demand picked up and precious metals recovered sharply in global markets. Gold rose by Rs 4,800 to reach Rs 1,46,600 per 10 grams, according to the All India Sarafa Association.
Silver also saw a strong rally, climbing Rs 9,000 to Rs 1.93 lakh per kg. The sharp rise came after prices had closed at Rs 1.84 lakh per kg on Tuesday. Analysts said the recovery in international markets, along with increased domestic festive buying, supported the gains.
Gold rises to Rs 1,46,600 per 10 grams
Gold of 99.9 per cent purity was priced at Rs 1,46,600 per 10 grams in Delhi on Wednesday, up from Rs 1,41,800 a day earlier. The Rs 4,800 increase came as buyers prepared for Dhanteras, a key occasion for purchasing gold and silver.
Soumil Gandhi, senior analyst for commodities at HDFC Securities, said the rise in prices was driven by a strong recovery in global markets and an increase in festive demand in India.
Silver jumps Rs 9,000 to Rs 1.93 lakh per kg
Silver prices rose sharply as well, gaining Rs 9,000 to reach Rs 1.93 lakh per kg on Wednesday. The metal had ended Tuesday’s session at Rs 1.84 lakh per kg.
The rally in domestic prices came alongside a broader recovery in precious metals across international markets, with both gold and silver posting strong gains.
Gold had fallen 8 per cent from its October peak
Rajiv Sharan, research head at Brickwork Ratings, said gold prices had dropped by around 8 per cent from their highest levels in October. He attributed the recent decline to a stronger US dollar, rising bond yields and reduced expectations of interest rate cuts by the US Federal Reserve. These factors had prompted traders to book profits.
Sharan said gold had risen by a relatively modest 5 to 7 per cent since the previous festive season. By comparison, prices had increased by around 65 per cent year-on-year by last Dhanteras.
Gold and silver climb in global markets
Spot gold rose by $113.72, or 3 per cent, to $4,043.93 per ounce, moving back above the $4,000 mark. Silver gained 4.5 per cent to reach $52.03 per ounce.
Praveen Singh, head of commodities at Mirae Asset Sharekhan, said precious metals received support after the US dollar weakened following the Democratic Party’s victory in the US midterm elections.
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