Gold prices have once again shown an increase in Delhi’s bullion market. The price of gold with 99.9% purity rose ₹ 800 to ₹ 1,03,420 per 10 grams on Friday. This increase came after a jump of ₹ 3,600 on Thursday. Overall, gold prices have increased by about ₹ 5,800 per 10 grams in the last five business days. Similarly, the price of gold with 99.5% purity is also trading close to ₹ 1,03,000. Not only gold, silver prices have also seen a tremendous rise.
On Friday, the price of silver rose ₹ 1,000 to ₹ 1,15,000 per kg (including all taxes). Silver prices have increased by ₹ 5,500 per kg in the last five days. This fast is a special attention for investors as the demand for both precious metals is continuously increasing.
Major causes behind speed
Strong demand
According to the All India Bullion Association, the strong demand of wholesale buyers in the market has supported prices. Both jewelery manufacturer and investor have made heavy purchases, increasing prices up.
Global instability and American tariff
CEO Chintan Mehta of Abans Financial Services says that the US has imposed 39% tariffs on gold imported from Switzerland. Switzerland is a large center of gold cleaning, so the supply chain has been disrupted due to this tariff. Due to this, the demand for gold has intensified as “safe haven”.
Indo-US trade talks
Jatin Trivedi of LKP Securities said that the ongoing trade talks between India and the US have not been successful yet. The tariff policy of the Trump administration has increased uncertainty among investors, which affects the demand for gold and prices.
Federal Reserve expected to cut interest rates
According to HDFC Securities analyst Soumil Gandhi, due to the reduction in US economic slow pace and inflation, the expectation of interest rates has increased, increasing gold prices as low interest rates make non-blessed products such as gold attractive.
There is also a big boom in the market
October delivery gold rose ₹ 782 to ₹ 1,02,250 per 10 grams on MCX (Multi Commodity Exchange). The December delivery contract recorded a rise of ₹ 849, causing the price to ₹ 1,03,195 per 10 grams.
Record boom in international market
At the international level, the price of gold has set a new record. Spot Gold in New York reached $ 3,500.33 per ounce on Friday. Spot Silver is trading at $ 38.28 an ounce, one of its highest prices.