Gold Prices Reach Record High Due to Increased Festive Season Demand

Gold Prices Reach Record High Due to Increased Festive Season Demand

Gold Prices Reach Record High Due to Increased Festive Season Demand

NEW DELHI: Gold prices rose Rs 200 to revisit the all-time high of Rs 78,700 per 10 grams in the national capital on Monday on persistent buying by stockists and traders even as the precious metal lost steam globally, according to the All India Sarafa Association.

The yellow metal had closed at Rs 78,500 per 10 grams on Friday.

Silver jumped Rs 500 to Rs 93,500 per kg on the back of fresh industrial demand. It had ended at Rs 93,000 per kg in the previous close.

Additionally, gold of 99.5 per cent purity climbed by Rs 600 to reclaim its all-time high level of Rs 78,300 per 10 grams.

The metal had finished at Rs 78,100 per 10 grams.

Earlier, gold prices hit a record Rs 78,700 per 10 grams on October 7.

Despite a weak trend overseas, the precious metal gained in the domestic market, mainly due to an increase in demand from jewellers, traders said.

In futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery declined by Rs 207 or 0.27 per cent to trade at Rs 76,100 per 10 grams.

Silver contracts for December delivery plummeted Rs 929 or 1.01 per cent to Rs 90,761 per kg on the MCX.

“Gold prices experienced volatility, fluctuating in MCX, while Comex gold remained relatively flat near USD 2,660. This sideways movement is a result of anticipation around a major data event scheduled for Thursday.

“Market participants are closely watching the potential impact of China’s stimulus measures, although uncertainty surrounding the specifics and total figure is causing hesitancy in global liquidity flows,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said.

In the international markets, Comex gold is trading 0.25 per cent lower at USD 2,669.50 per ounce.

“Gold resumed trading on a weaker note on Monday, pressured by strong US dollar and Treasury yields,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.

In addition to this, the long liquidation by short-term traders also had a negative impact on gold prices, and money managers reduced their net-bullish bets on gold to their lowest level in eight weeks, Gandhi added.

Silver fell 1.17 per cent lower to USD 31.39 per ounce in Asian markets.

“COMEX gold is holding onto modest gains from last week. However, the sharp upside potential is being limited by a stronger dollar, as markets have scaled back aggressive rate cut expectations,” Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said.

According to Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services, gold prices consolidating previous sessions gains as market participants look for fresh cues like incoming data, developments in the Middle East and strong physical demand at Asian trading centres due to festive season.

Focus this week will be incoming data from China, inflation numbers from the UK, Eurozone, European Central Bank (ECB) monetary policy and US data on retail sales and the housing market, which will further provide more insights on the trajectory of the gold prices, Mer said.

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