Gold Silver Price: The record increase in gold and silver prices continues. The prices of both precious metals rose for the sixth consecutive trading session. Gold prices rose by Rs 500 to hit an all-time high of Rs 81,500 per 10 grams. At the same time, silver increased by Rs 1,000 to Rs 1.02 lakh per kg.
This is also an all-time record level of silver. Silver prices have increased by Rs 10,000 per kg in the last six trading sessions. At the same time, from October 16 till now, gold has increased by Rs 2,850 per 10 grams.
Why are gold and silver prices increasing?
According to All India Bullion Association, gold and silver prices have increased due to demand during festivals and wedding season. According to Narinder Wadhwa, MD of SKI Capital, there are many reasons behind silver reaching Rs 1 lakh on the physical market and MCX. This includes factors such as seasonal demand in India and geopolitical risks of conflict in West Asia.
In July, the government had reduced the basic customs duty on gold and other metals. After this, a huge fall of 7 percent was seen in the prices of gold and silver in the local markets. However, factors like the ongoing festive season, expectations of interest rate cut in the US and rising geopolitical tensions have pushed gold and silver prices higher again.
What is the expert’s opinion?
Jatin Trivedi, VP Research Analyst, Commodities and Currencies, LKP Securities, said that the interest rate cycle is the biggest reason for the rise in gold at this time. Additionally, uncertainty regarding the outcome of the upcoming US presidential election is also playing a role in keeping gold prices high.
“Investors are turning to gold in an environment of volatility,” said Saumil Gandhi, senior commodity analyst at HDFC Securities. Therefore, the fear of increasing tension in the Middle East is also attracting traders towards gold. Due to which the price of gold is increasing.
“Gold and silver have performed very strongly,” said Rahul Kalantri, vice president of commodities at Mehta Equity Ltd. Gold prices hit new highs, while silver hit a new 12-year high of US$35 an ounce. However, in the Asian market, silver fell 0.86 percent to $ 34.74 an ounce. During the day it touched a new high of US$35.055 an ounce.
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