Due to the boom in the international market and economic uncertainties like shutdown in America, investors have turned towards safe investments. Due to this effect, gold prices in Delhi’s bullion market increased for the third consecutive day on Wednesday and rose by Rs 2,600 to reach a new high of Rs 1,26,600 per 10 grams.
A total increase of Rs 6,000 has been recorded in the price of gold in the last three days. According to the All India Bullion Association, gold of 99.9% purity rose by Rs 700 to close at Rs 1,24,000 per 10 grams on Tuesday, while it reached a new high on Wednesday. The price of gold of 99.5% purity also increased by Rs 2,600 to Rs 1,26,000 per 10 grams. Last time it closed at Rs 1,23,400.
Experts say that due to the US government shutdown, increasing geopolitical tensions, and global market instability, investors are investing money in safe options like gold.
Along with this, a sharp jump was also seen in the price of silver. On Wednesday, silver rose by Rs 3,000 to Rs 1,57,000 per kg, which is very close to its record level. It had closed at Rs 1,54,000 per kg on Tuesday, while it had reached a high of Rs 1,57,400 per kg on Monday.
There was a strong rise in both gold and silver in foreign markets also. Spot gold rose nearly two percent to a record high of $4,049.59 an ounce. According to Kainat Chainwala, AVP (Commodity Research), Kotak Securities, “Investors are leaning towards safe investments due to the slowdown in the US economy and government shutdown. That is why gold has crossed the level of $ 4,000 an ounce for the first time.”
He said tensions in Ukraine, political instability in France and Japan and expectations of a possible cut in interest rates by the Federal Reserve have also boosted gold prices.
Meanwhile, the bullion market of Indore also remained bullish. According to local traders, gold rose by Rs 2,250 to Rs 1,26,100 per 10 grams and silver rose by Rs 4,600 to Rs 1,56,600 per kg. At the same time, the silver coin was sold at Rs 1,700 per piece.