Silver prices in the last six trading sessions have zoomed by as much as Rs 10,000 per kg. Gold has increased by Rs 2,850 per 10 grams since October 16.
The All India Sarafa Association said gold and silver prices today breached fresh record high levels in the national capital for the sixth consecutive session, mainly driven by demand from the festival and wedding seasons.
Gold prices shot up by Rs 500 to a new high of Rs 81,500 per 10 grams, while silver jumped by Rs 1,000 to Rs 1.02 lakh per kg. The rates for 99.9 per cent pure gold as well as for 99.5 per cent pure gold also increased by Rs 500 each to Rs 81,500 per 10 grams and Rs 81,100 per 10 grams, respectively.
Silver rallied by Rs 1,000 to a new high of Rs 1.02 lakh per kg from the previous closing price of Rs 1.01 lakh per kg on Tuesday (22 October).
Silver Prices All-time High
Narinder Wadhwa of SKI Capital called a rally in silver prices by leaps and bounds to levels up to Rs 1 lakh each in the physical market as well as on the Multi-Commodity Exchange, but described it as a more vivid reflection of multiple factors getting together.
In July, gold and silver prices corrected sharply by 7 per cent in the local markets after the government slashed basic customs duty on gold and other metals. However, the bullion prices rebounded as demand from Indian consumers increased due to ongoing festivals, expectations of rate cuts in the US and flare up in geopolitical tensions.
December gold contracts jumped to Rs 78,768 on the Multi-Commodity Exchange with a gain of 0.14%. In intra-day trade, it had even touched an all-time high of Rs 78,919 per 10 grams.
The other day, gold prices, too, had a positive movement with support coming in from Comex, which has been taking gold near to USD 2,750. This helped gold at MCX to be sustained above Rs 78,750 and the price was indicating the underlying positive sentiment.
As per Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, “The prevailing favorable interest cycle has been one of the key drivers of gold in recent times”.
Also read! Local Demand Could Push The Gold To An All-Time High, Whereas Silver Can Gain Rs 500 Per Kg.
Apart from the geopolitical tensions, uncertainty over the outcome of US Presidential elections is also helping gold prices stay at the elevated level, said Trivedi. Silver December contracts fell by Rs 456 or 0.46 per cent to trade at Rs 99,516 per kg. It had, during the day, touched an all-time high level of Rs 1,00,081 per kg on the MCX.
International Comex gold futures traded 0.17 percent higher at USD 2,764.50 an ounce world over.
“Gold prices continued to form successive highs, breaking the USD 2,750-mark earlier on Wednesday.”.
“The risk-off environment, coupled with the prospect of the Middle East conflict escalating further, has yet again made traders resort to gold, further fuelling haven flows towards the precious metal,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Silver was quoted 0.86 per cent lower at USD 34.74 an ounce in the Asian market hours, but it did surge to a new high of USD 35.055 an ounce during the day.
“Gold and silver showed good momentum. Gold prices have moved to new highs while silver touched a fresh 12-year high at USD 35 an ounce,” said Rahul Kalantri, VP of Commodities at Mehta Equities Ltd.
