Gold prices in the national capital witnessed a sharp uptick on Thursday, climbing Rs 700 to reach Rs 1,60,300 per 10 grams (inclusive of all taxes), as per data released by the All India Sarafa Association.
The yellow metal of 99.9 per cent purity settled at Rs 1,59,600 per 10 grams in the previous trading session on Wednesday. The latest surge represents a significant gain of 0.44 per cent in a single day.
Factors Behind the Price Rally
Market analysts attributed the rise in gold prices to a combination of domestic and international factors. Weakening equity markets and a slight dip in the US dollar index prompted investors to seek refuge in safe-haven assets like gold. Additionally, persistent inflationary pressures and geopolitical uncertainties continued to support the precious metal's demand.
In the international market, spot gold traded higher at $2,350 per ounce, up from $2,340 per ounce in the previous close. The positive trend in global bullion prices further bolstered domestic sentiment.
Silver Also Shines
Following gold's lead, silver prices also edged higher. The white metal rose by Rs 200 to Rs 72,500 per kilogram in Delhi, compared to Rs 72,300 per kilogram in the prior session.
According to traders, the ongoing wedding season and festive buying have kept demand robust for both gold and silver. Retail investors and jewelers have been actively purchasing, anticipating further price increases in the coming weeks.
The All India Sarafa Association, which tracks bullion prices across major Indian cities, reported similar trends in Mumbai, Kolkata, and Chennai, though Delhi remained the highest-priced market for gold.
Industry experts advise investors to monitor global economic data and central bank policies closely, as these factors are likely to influence gold's trajectory in the near term.
