Gold reached a new high on Wednesday due to the continuously increasing demand during the festive season and the rise in global markets. In Delhi’s bullion market, the price of gold increased by Rs 1,000 to reach a record level of Rs 1,31,800 per 10 grams.
According to All India Bullion Association, gold had closed at Rs 1,30,800 per 10 grams on Tuesday. At the same time, gold of 99.5 percent purity also increased by Rs 1,000 to Rs 1,31,200 per 10 grams. Strong buying has kept the market bullish.
However, silver prices declined. After reaching a new peak of Rs 1,85,000 per kg on Tuesday, silver fell by Rs 3,000 to Rs 1,82,000 per kg on Wednesday.
Commodity expert Dilip Parmar of HDFC Securities said that gold is in a bullish trend in both domestic and global markets. Demand remains strong due to rising international prices and festive shopping in the country. He said that the strengthening of the rupee limited the gains to some extent.
The price of gold has also reached record levels in foreign markets. Spot gold reached an all-time high of $4,218.32 an ounce. PL Capital Director Sandeep Raichura said that gold has crossed our second target of $ 4,200 an ounce. This bullishness has been maintained due to continuous purchases by China and increase in gold reserves by central banks.
He also said that ETFs (Exchange Traded Funds) and Reserve Banks of many countries are continuously buying gold, which has further increased the confidence of investors in gold in the long run.
On the other hand, silver was trading 2.81% higher at $ 52.84 an ounce in the international market, although it had touched a record high of $ 53.62 an ounce on Tuesday.
Motilal Oswal Financial Services analyst Manav Modi said investors are turning to gold and silver as safe options due to US-China trade tensions and the expectation of a possible cut in interest rates by the Federal Reserve.
A rise in gold prices was also seen in Indore. In the local bullion market on Wednesday, gold rose by Rs 400 to Rs 1,31,200 per 10 grams, while silver fell by Rs 2,000 to Rs 1,80,500 per kg. At the same time, the price of silver coin was Rs 2,000 per piece.
This bullishness in the market is expected to continue ahead of festivals, as both investors and buyers are making huge purchases for Diwali and Dhanteras.