Gold and Silver Prices: Just ahead of the auspicious occasion of Dhanteras, gold and silver prices are experiencing a meteoric rise. These precious metals are reaching unprecedented highs in both domestic and international markets. On Friday, gold December futures on the MCX (Multi Commodity Exchange) rose by ₹3,000 to reach a new record high of ₹1,30,005 per 10 grams.
Silver also followed suit, reaching a new peak of ₹1,67,999 per kilogram. This surge is primarily due to fears of a renewed debt crisis in US regional banks, prompting investors to turn to these metals, considered safe investments.
Why is the market booming?
Several global factors are responsible for this surge:
Safe haven demand: Fears of a US banking crisis have driven investors to “safe haven” assets like gold and silver.
Dollar Weakness: The US Dollar Index (DXY) declined by 0.15%, which is considered favorable for gold prices.
Bond Yield Decline: The yield on US 10-year bonds fell below 4.0%, increasing the attractiveness of gold investments.
Cryptocurrency Decline: Following the turmoil in the cryptocurrency market, investors turned to traditional safe-haven assets.
Expectations for an Interest Rate Cut: The possibility of an interest rate cut by the Federal Reserve in the near future also keeps the market sentiment positive.
Gold has surpassed $4,300 per troy ounce, and silver has surpassed $53 per troy ounce in the international market. Gold is poised to gain approximately 7.6% this week, which would be its biggest weekly gain since 2020.
What Experts Say?
According to Manoj Kumar Jain of PrithviFinmart Commodity Research, “Global central banks and ETF investors are continuously investing in safe-haven assets like gold and silver, which is further fueling this rally.” Jain estimates that gold prices could reach $4,890 and silver $65 per ounce in the long term.
Latest gold prices in major cities (based on 8 grams):
Delhi: 22-carat gold – Rs. 97,752 | 24-carat pure gold – Rs. 1,05,208
Mumbai: 22-carat gold – Rs. 96,952 | 24-carat pure gold – Rs. 1,04,400
Chennai: 22-carat gold – Rs. 96,728 | 24-carat pure gold – Rs. 1,04,144
Hyderabad: 22-carat gold – Rs. 96,712 | 24-carat pure gold – Rs 1,04,072