New Delhi: Gold prices have once again shown an increase in the bullion market of Delhi. The price of 99.9% purity gold rose by ₹ 800 to ₹ 1,03,420 per 10 grams on Friday.
This increase comes after a jump of ₹ 3,600 on Thursday.
Overall, gold prices have increased by about ₹ 5,800 per 10 grams in the last five trading days. Similarly, the price of 99.5% purity gold is also trading near ₹ 1,03,000. Not only gold, silver prices have also seen a tremendous rise.
On Friday, the price of silver increased by ₹ 1,000 to ₹ 1,15,000 per kg (including all taxes). Silver prices have risen by a total of ₹5,500 per kg in the last five days. This rise is a matter of special attention for investors as the demand for both precious metals is constantly increasing.
Strong demand
According to the All India Sarafa Association, strong demand from bulk buyers in the market has supported the prices. Both jewelery manufacturers and investors have made heavy purchases, which has pushed the prices up.
Global instability and US tariffs
Chintan Mehta, CEO of Abans Financial Services, says that the US has imposed a 39% tariff on gold imported from Switzerland. Switzerland is a major center for gold refining, so the supply chain has been disrupted due to this tariff. Due to this, the demand for gold has increased as a “safe haven”.
India-US trade talks
Jatin Trivedi of LKP Securities said that the ongoing trade talks between India and the US have not been successful yet. The tariff policy of the Trump administration has increased uncertainty among investors, which is affecting the demand and prices of gold.
Expectation of interest rate cut from Federal Reserve
According to HDFC Securities analyst Saumil Gandhi, the US economic slowdown and reduction in inflation have increased the expectation of interest rate cut, which increases the prices of gold as low interest rates make non-interest products like gold attractive.
Big rise in the market too
Gold for October delivery on MCX (Multi Commodity Exchange) rose by ₹ 782 to ₹ 1,02,250 per 10 grams. The December delivery contract recorded a rise of ₹ 849, taking the price to ₹ 1,03,195 per 10 grams.
Record rise in international market
The price of gold has also set a new record at the international level. Spot gold in New York reached $3,500.33 an ounce on Friday. Spot silver is trading at $38.28 an ounce, one of its highest prices.