Gold and silver prices continue to rise globally, driven by uncertainties related to the upcoming US presidential elections and broader economic concerns. On October 23, gold prices in India surpassed the significant Rs 80,000 mark for the first time, reflecting heightened demand for precious metals.
As of today, the price of 24-carat gold, recognized for its highest purity, reached Rs 80,220 per 10 grams. For jewellery buyers, 22-carat gold, which is more durable due to its alloy composition, was priced at Rs 73,550 per 10 grams, according to data from goodreturns.in.
Futures Market Update
In contrast, gold prices in the futures market have not yet reached the Rs 80,000 threshold. On the Multi Commodity Exchange (MCX), gold prices for contracts due December 5, 2024, increased by 0.06 percent, standing at Rs 78,702 per 10 grams. Meanwhile, silver traded at Rs 99,791 per kilogram.
Silver Prices Soar
Silver prices saw an even more dramatic increase, surpassing the Rs 1 lakh mark to trade at Rs 1,04,000 per kilogram.
Factors Behind the Price Increase
Rahul Kalantri, vice-president of commodities at Mehta Equities, noted, “Gold and silver demonstrated strong momentum on Tuesday, with gold prices reaching new highs above $2,750 per troy ounce, while silver hit fresh 12-year highs at $35 per troy ounce. In India, silver on the MCX platform crossed the five-digit mark per kilogram for the first time. The uncertainties surrounding the upcoming US presidential elections, combined with the BRICS nations’ drive toward de-dollarisation, are boosting demand for these precious metals.”
As the elections approach, concerns regarding Vice President Kamala Harris’s political prospects further enhance gold and silver’s appeal as safe-haven investments. However, Kalantri warned that the strengthening dollar index and rising US bond yields might temper any substantial gains in these metals.
Current Gold Prices Across India
On October 23, 2024, the retail prices of gold in various cities were as follows:
In Delhi, 22-carat gold was priced at Rs 73,550, while 24-carat gold reached Rs 80,220.
Mumbai reported 22-carat gold at Rs 73,400 and 24-carat gold at Rs 80,070.
In Ahmedabad, 22-carat gold cost Rs 73,450, with 24-carat gold at Rs 80,120.
Chennai showed 22-carat gold at Rs 73,400, with 24-carat gold also at Rs 80,070.
Kolkata’s prices mirrored Chennai’s, with 22-carat gold at Rs 73,400 and 24-carat gold at Rs 80,070.
Pune reported 22-carat gold at Rs 73,400 and 24-carat gold at Rs 80,070.
Lucknow’s 22-carat gold was priced at Rs 73,550, while 24-carat gold reached Rs 80,220.
Bengaluru also reported 22-carat gold at Rs 73,400 and 24-carat gold at Rs 80,070.
Jaipur’s prices were the same as Delhi’s, with 22-carat gold at Rs 73,550 and 24-carat gold at Rs 80,220.
Patna had 22-carat gold at Rs 73,450 and 24-carat gold at Rs 80,120.
Bhubaneswar and Hyderabad both showed 22-carat gold at Rs 73,400 and 24-carat gold at Rs 80,070.
Understanding Gold Pricing
The retail price of gold, expressed per gram, is influenced by numerous factors, including economic conditions, geopolitical events, and the dynamics of supply and demand. In India, the final retail price is also affected by import duties, taxes, and currency exchange rates.
Gold holds significant cultural importance in India, being a popular investment choice and a central element in weddings and festivals. As market conditions continue to evolve, investors and traders are urged to stay informed about these trends.
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