Gold surges by ₹250, reaching a new record high; What’s driving the rally?

Gold prices increased by 250, hitting a record high of 78,700 per 10 grams on Monday, fueled by consistent demand from jewelers and robust performance in international markets.

Vaamanaa Sethi
Published7 Oct 2024, 06:05 PM IST
Gold price in India touched all-time high to  <span class='webrupee'>₹</span>78,700 per 10 grams on Monday, October 7.
Gold price in India touched all-time high to ₹78,700 per 10 grams on Monday, October 7.

Gold prices rose by 250, reaching a new all-time high of 78,700 per 10 grams on Monday, driven by steady demand from jewelers and strong performance in international markets. In comparison, the precious metal closed at 78,450 per 10 grams last Friday.

In contrast, silver saw a decline of 200, falling to 94,000 per kg from 94,200 per kg on Friday, as reported by the All India Sarafa Association.

Also Read | Gold and silver prices today on 07-10-2024: Check latest rates in your city

Gold with 99.5 percent purity increased by 200, reaching an all-time high of 78,300 per 10 grams, up from 78,100 per 10 grams in the previous session.

Traders attributed this rise in gold prices to a boost in domestic demand from stockists and retailers.

Additionally, the downturn in equity markets contributed to the surge, as investors sought safer assets like gold.

During Asian trading hours, Comex gold is up 0.14 percent, trading at USD 2,671.50 per ounce.

What's behind the surge?

"Gold prices may continue to trade in a narrow range as caution prevails ahead of upcoming US inflation numbers," Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, was quoted as saying by PTI.

Also Read | Gold price falls after US jobs data; experts highlight key levels for MCX Gold

Conversely, silver dropped by 0.61 percent, reaching USD 32.20 per ounce in global markets.

“Gold prices saw a positive surge after initial weakness, driven by escalating geopolitical tensions between Iran and Israel. Strong buying activity was observed, with prices taking support near 75,900 in MCX and $2,640 in Comex. Key data ahead includes the US Fed's meeting minutes on Wednesday (9th Oct) and US CPI data on the 10th, which will provide crucial indicators for gold's next move. In MCX, support is placed at 75,600- 75,750, while resistance is seen at 76,450- 76,650. India's upcoming RBI policy on Wednesday is also expected to influence the rupee, potentially affecting gold prices further,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

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First Published:7 Oct 2024, 06:05 PM IST
Business NewsMarketsCommoditiesGold surges by ₹250, reaching a new record high; What’s driving the rally?

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