Gold Rate In India made a historic start of October amid festive season buying spirit, US government shutdown chaos, and geopolitical tensions.
These factors ensures that the precious metal continues its bullish run on Wednesday. As we celebrate Gandhi Jayanti and Dussehra on October 2, the festive season gold buying is likely to keep the precious metal in demand on Thursday.
Gold rates in India kicked off October on a historic note amid festive season buying, US government shutdown chaos, and ongoing geopolitical tensions. These factors helped the precious metal sustain its bullish momentum on Wednesday. With Gandhi Jayanti and Dussehra on October 2, festive demand is expected to keep gold in strong demand on Thursday. Meanwhile, the US government shut down due to disagreement between the President Donald Trump administration and Congress over a funding bill will likely push global investors towards gold.
Gold Rate in India
Gold rate in India created a record after surging to a historic level on Wednesday, October 1. The price of 24 karat gold in India surged by Rs 120 to Rs 11,864 per gram. Likewise, the price of 18 karat gold in India increased by Rs 110 to Rs 10,875 per gram. 18 karat gold rate in India jumped by Rs 90 per gram to Rs 8,898.
While gold continued its bullish run, the silver rate in India remained stable on Wednesday at Rs 151 per gram and Rs 1,51,000 per kilogram. Silver rate has witnessed a sharp surge since the beginning of the year due to rising industrial demand and its attractive valuations against gold.
Gold Price Outlook
The price of gold hit a record high on Wednesday as investors turned to safe-haven assets on growing risks of a US government shutdown, highlighted Manav Modi, Analyst, Precious Metal, Research, Motilal Oswal Financial Services Ltd.
“Gold is benefiting from “concerns over a weaker dollar, and political situation with standoff about a government shutdown in the U.S. and also general geopolitical uncertainty. U.S. Senate failed to pass legislation extending government funding, pushing the country closer to a shutdown, while President Donald Trump threatened additional federal workforce cuts,” noted Modi.
Given the gepoliticial scenario and strong buying sentiment in India amid festive season, gold prices may see a further increase. ” With the festival of Dussehra forthcoming, demand has traditionally increased as consumers plan for and show interest in purchases. Market watchers note that the continued interest in the gold product, in addition to festival demand, was responsible for the current momentum in gold valuations, making gold a preferred and significant consideration for both gifting and demand purposes. Concerning traders or the market, they also expect a steady and firm price valuation in the near-term, and will expect stronger price movements if the buying momentum increases through the remaining parts of the festive season,” noted Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.
Silver Price Outlook
Silver continues to act as an affordable alternative among retail jewellery buyers. The white metal has also saw a sharp surge in it global demand due to strong industry output. Silver demand will also find support due to festive season buying.
” The Dussehra festival is also supporting increased buying of silver specifically in the form of coins and utensils, which have driven the demand included in the upward price movement. Analysts have indicated that festival buying and participants seeking safe-haven assets in a volatile market have provided support for the positive outlook for silver trading on a daily basis,” stated Kamboj.
Dussehra, Gandhi Jayanti Celebration On October 2
One of the most popular Hindu festivals, associated with the Hindu mythology Ramayana, Dussehra will be celebrated on Thursday, October 2. The festival also coincides with the Gandhi Jayanti celebration. People celebrate the birth anniversary of Indian political leader Mohandas Karamchand Gandhi, fondly known as Mahatma Gandhi.