New Delhi: Gold prices saw a steep surge of Rs 1,000 and breached the psychological Rs 82,000 per 10 grams-mark for the fist time in the national capital on Wednesday, amid robust buying by jewellers ahead of Diwali.
According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity soared by Rs 1,000 to hit a fresh peak of Rs 82,400 per 10 grams in Delhi.
The precious metal of 99.5 per cent purity also climbed Rs 1,000 to hit an all-time high of Rs 82,000 per 10 grams in the local markets.
In the previous session, gold of 99.9 per cent and 99.5 per cent purity had closed at Rs 81,400 and Rs 81,000 per 10 grams, respectively.
Traders attributed the sharp jump in gold prices to massive buying by local jewellers in order to meet the rising demand during Diwali as well as firm global trend due to uncertain geopolitical situation ahead of the US presidential elections.
At Rs 82,400 per 10 gram, gold price has recorded a 35 per cent surge since October 29 last year when it was at Rs 61,200 per 10 grams.
Meanwhile, extending the gains for the fifth straight day, silver also jumped Rs 1,300 to Rs 1.01 lakh per kg against the previous close of Rs 99,700 per kg.
At Rs 1,01,000 per kg, Silver price has recorded a jump of 36 per cent since October 29 last year when it stood at Rs 74,000 per kg.
Additionally, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery jumped Rs 444 or 0.56 per cent to trade at Rs 79,677 per 10 grams.
During the day, the yellow metal had bounced Rs 542 or 0.68 per cent to hit a record high of Rs 79,775 per 10 grams.
“Gold remains buoyant on festive demand in India, with added momentum from market bets anticipating a Trump victory in the upcoming US election. This optimism has led to a surge in liquidity in gold markets,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said.
Gold shows a significant desire for additional gains during festival season purchases, Trivedi added.
However, silver contracts for December delivery slipped Rs 45 or 0.05 per cent to trade at Rs 98,685 per kg on the MCX.
In the international markets, Comex gold futures was traded 0.60 per cent higher or USD 16.80 per ounce to USD 2,797.90 per ounce.
“Gold reached a new high during European trading hours on Wednesday amid a fall in the US Treasury yield and the US dollar,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Market participants also monitor US macroeconomic data, such as private sector employment figures and the advance GDP print to be released on Wednesday, which will provide directions for the US Federal monetary policy interest rate path, Gandhi said.
According to Manav Modi, Analyst, Commodity Research, Motilal Oswal Financial Services Ltd, gold prices hit a record high as safe-haven demand was boosted by increased political uncertainty in the US and Japan, as well as anticipation of more cues on interest rates.
Bullions had a slow start to the week as a less severe than feared attack by Israel on Iran pushed up some hopes of easing tensions in the Middle East. But safe-haven demand remained underpinned by anticipation of a tight 2024 US Presidential election, with voting set for November 5, Modi said.
Comex silver futures was trading flat at USD 34.45 per ounce in the Asian markets.
Beyond elections, tensions in the Middle East also remained in play, given that Iran still vowed retaliation for Israel’s recent strike. Consumer confidence data reported on Tuesday were better than expectations.
However, no major impact was seen on market as major uncertainties are driving the prices, he added.
