Big jump in gold by ₹ 4800 before Dhanteras, silver also crosses ₹ 1.93 lakh

Indian markets are back to their glory as the festive season begins. Especially before Dhanteras, the crowd of customers has started increasing in jewelery showrooms. Meanwhile, if you are also planning to buy gold or silver on this festival, this news will have a direct impact on your budget. After the slump of the last few weeks, the bullion market is seeing a sudden movement. A surge in demand from domestic jewelers coupled with strong signs from overseas markets has led to a surge in precious metal prices.

New Gold and Silver Rates in Delhi

According to the All India Bullion Association, the price of gold of 99.9 per cent purity in the national capital Delhi rose sharply by Rs 4,800 on Wednesday. Gold, which on Tuesday rose to Rs. 1,41,800 per 10 grams, it is now Rs. 1,46,600 per 10 grams has reached the level. Not only gold, but also silver has surprised buyers. In a single day, there has been a huge jump in the price of silver by 9000 rupees. Silver price was Rs 1.84 lakh per kg in the last trading session, which has now increased to Rs 1.93 lakh per kg including all taxes.

Why did gold and silver suddenly become expensive?

Apart from local reasons, global factors are also responsible for this rise in prices. Saumil Gandhi, Senior Commodity Analyst at HDFC Securities said gold has been supported by a strong recovery in overseas markets, along with increased festive demand in the country. At the same time, according to Rajeev Sharan, head of research at Brickwork Ratings, this surge in prices may also provide some relief to festival shoppers. In fact, the price of gold has fallen nearly 8 percent from its peak in October. At the time, due to the strength of the US dollar, rising bond yields and reduced expectations of interest rate cuts by the Federal Reserve, traders booked profits, causing prices to fall.

Rajeev Sharan also told an important thing that the price of gold increased by about 65 percent year-on-year on last Dhanteras. But this time the prices have increased by only 5 to 7 percent compared to last festive season. Due to this, common consumers are seeing some stability in prices in the market.

The impact of the US election or global market movements

If we look at the foreign markets, there is also a tremendous rise in gold and silver. Gold on the international market rose 113.72 US dollars or 3 percent to 4,043.93 dollars an ounce. Thus gold has once again crossed the important level of $4,000. In the foreign market, silver was also trading at 52.03 US dollars per ounce, up 4.5 percent.

Praveen Singh, head of commodities at Mir Asset Sharekhan, linked the rise to American politics. According to him, the dollar has weakened after the victory of the Democrats in the US mid-term elections, due to which the precious metals have strengthened. He said that because of Democrats’ control of both houses of the US Congress, regulatory scrutiny in the technology sector could become more stringent. In addition, investment in data centers may also slow down. This will have a direct negative impact on the American economy, driving up the price of gold.