Gold prices in India have surged to record highs, reaching ₹79,420 per 10 grams for 24k gold and causing a potential dip in demand ahead of Diwali. This unprecedented rally, which has been ongoing for the past four days, sees 22k gold priced at ₹72,800 per 10 grams and 18k gold at ₹59,570 per 10 grams. The jump in prices is attributed to rising tensions in the Middle East and uncertainties surrounding the upcoming U.S. elections, leading investors to seek the safety of gold as a traditional safe-haven asset.
In the U.S., gold prices have also surpassed the historic benchmark of $2,700 per ounce, reflecting similar market sentiments. Spot gold has gained 1% to $2,720.05 per ounce, while spot silver rose significantly by 6% to $33.58. Additionally, platinum and palladium prices saw increases, further indicating strong demand for precious metals in turbulent times.
The significant price movements in the past ten days for 22k gold show an upward trend, with gains almost daily. Silver prices have also increased, with 1 kg now priced at ₹99,500, reflecting a broader rally in precious metals.
As for city-specific rates, the price for 1 gram of 22k gold is consistent across major metropolitan areas like Chennai, Mumbai, and Kolkata at ₹7,280, with a slightly higher rate in Delhi at ₹7,293.
Given these developments, it will be interesting to see how consumers respond to high gold prices during the festive season. Will this lead to a decrease in gold purchases, or will the cultural significance of gold during Diwali encourage buying despite the costs?
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Gold prices are subject to market fluctuations and can change rapidly due to various factors, including geopolitical events, economic conditions, and investor sentiment. It is advisable to conduct thorough research and consult with a financial advisor before making any investment decisions related to precious metals.
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