Gold Silver Price: The price of gold remains around the record high. Experts believe that gold prices will remain unstable in the coming weeks. Investors will monitor the comments of the US government’s funding bill, labor market data and Federal Reserve.
The minutes of the Federal Open Market Committee (FOMC) meeting on Thursday can also affect the market’s sentiment. Expert reported that gold and silver imports in India almost doubled in September compared to August. The reason for this is the festival and wedding season.
Pranav Mer, Vice President of Commodity and Currency Research in JM Financial Services, says that the gold price is expected to be higher during the new week. Investors will book profits first and then resume shopping. More focus will be on the voting and labor market data of the funding bill of the US government.
Last week boom and reasons
Mer said that gold prices rose by 3.5–4 percent last week, which is concerned about weak US dollars and partial US government shutdowns. This delayed the release of important economic data.
He also said that investors are also taking into account the possible Fed rate cut later this month. The December delivery gold futures prices on MCX rose by Rs 3,222 or 2.8 percent last week. On Friday, gold closed at Rs 1,18,113 per 10 grams, which was close to its all-time high of Rs 1,18,444 recorded during the week.
According to Alphamoney’s Jyoti Prakash, the benefit of investment in gold is not just in the boom. Rather, it also gives an opportunity to make a safe profit despite a slight decline. That is, gold is a gradual and steady investment investment.
Causes of boom in gold
Experts say rising ETF holdings, central bank demand and strong betting promoted gold boom. Gold prices are separated from production costs. Producer margin is at the highest level in the last 55 years.
Prathamesh Mallya of Angel One said that gold prices are at record high in the domestic market. He connected it to the US government shutdown, potential fed rate cut and the impact of tariffs on different countries.
Prices increased by 46% this year
According to Riya Singh, research analyst of Emkay Global Financial Services, gold prices made new all-time high in the fifth consecutive season last week. Gold is strengthening its position as a safe investment amid American political and monetary instability.
He further said, “This year, gold prices increased by more than 46 percent, which is the biggest annual rise since 1979.” This boom demanded investment and safe investment in gold-ported ETF behind this boom. The dollar gains limited due to the expectation of two potential fed rate cuts. At the same time, geopolitical tensions in Europe kept gold attractive.
Silver prices also rise
Last week, silver prices were also strong. The December delivery silver rose by Rs 3,855 or 2.72 percent to close at Rs 1,45,744 per kg on Friday, while its all-time high in the week was Rs 1,46,975 per kg.
Smartwealth.Ai founder Pankaj Singh says that silver has been continuously showing faster for several months. In September, both MCX and COMEX continued to rise. Strong performance of silver is due to its monetary and industrial use. According to Singh, strong demand and limited supply in solar panels, EV and electronics kept the silver market tight.
Pranav Mer of JM Financial Services says that domestic silver prices will be filled with ups and downs, but will maintain inclination upwards. He described the nearest close level of Rs 1,50,000–1,70,000 per kg.
What are the chances ahead?
Expert estimates that gold will remain intact due to the demand for safe investment, weak US dollars and global geopolitical uncertainty. In between, profit booking will fluctuate, but will not affect the current boom.
(With input from PTI)
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