Home / Markets / Commodities /  Gold prices today surge 600 per gram, silver rates jump 1,800 per kg
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Gold and silver prices surged in the special Muhurat trading session on MCX, tracking positive global cues. On MCX, gold futures jumped 1.5% to 47,571 per 10 gram while silver rates surged 2.8% to 64,224 per kg. 

In US, gold futures rose rose 1.8% to $1,795.70 an ounce, rebounding from a three-week low hit on Wednesday. Analysts say gold took some comfort from the fact that there was no strong signal with regards to future rate hikes from the Fed. Spot silver rose 1.2% to $23.79 per ounce.

The US central said on Wednesday it would start trimming its massive bond-buying programme beginning this month but said indicated it would be patient on raising interest rates. Today, the Bank of England defied expectations of more hawkish policy when it kept interest rates on hold on Thursday, dashing expectations for a hike that would have made it the first of the world's big central banks to raise rates after the pandemic. Global stock markets today hit record highs. 

Ultra-loose U.S. monetary policy has helped drive gold sharply higher since the financial crisis of the late 2000s, with low interest rates cutting the opportunity cost of holding non-yielding assets and inflation fears stoking demand for a hedge.

Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of gold, which pays no interest.

Analysts also said the festive buying in India also was supporting the precious metal.

“We are expecting a 30-40 percent rise in sales volumes till Diwali compared to last year. With the upcoming wedding season ahead, we expect retail demand for gold and other gems and jewellery products to traverse a high-growth trajectory," said Ahammed MP, Chairman, Malabar Gold & Diamonds.




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