Wed, 13 November 2024 05:26:21am
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Gold Prices Surge to ₹81,400 Amid Dhanteras Shopping Frenzy—Is Silver Taking the Lead?
Gold Prices Surge to ₹81,400 Amid Dhanteras Shopping Frenzy—Is Silver Taking the Lead?
As the festival of Dhanteras approaches, gold prices have soared to a staggering ₹81,400 per 10 grams, igniting a shopping spree among consumers and traders alike. Amidst this surge, an unexpected trend is emerging—silver coins are becoming the preferred choice for many, with traditional gold purchases taking a backseat due to skyrocketing prices. As demand escalates, traders are reassessing the market dynamics, leaving many to ponder the future of gold and silver in this festive season.
Gold prices in the national capital reached an impressive ₹81,400 per 10 grams on Tuesday, marking a rise of ₹300 as retailers and jewelers rushed to meet the heavy demand associated with Dhanteras. This increase brings gold perilously close to its record high, reflecting an enthusiastic market environment, according to the All India Sarafa Association.
The significant price jump comes as silver also sees a rise, climbing by ₹200 to reach ₹99,700 per kg. This surge is driven by heightened demand from both industrial units and coin manufacturers, showcasing a broader interest in silver as an alternative investment. The previous closing price for silver was ₹99,500 per kg, demonstrating a notable increase.
Traders have noted a distinct shift in consumer behavior this Dhanteras, with many opting for silver coins instead of gold due to the latter's exorbitant prices. This shift highlights the economic pressures facing consumers and the impact of gold’s high valuation on traditional purchasing patterns. For instance, gold of 99.5 percent purity increased by ₹300, nearing its all-time peak, while gold with 99.9 percent purity was quoted at ₹81,100 per 10 grams on Monday, just before the latest surge.
In the futures market, gold contracts for December delivery rose by ₹178, or 0.23 percent, reaching ₹78,744 per 10 grams on the Multi Commodity Exchange (MCX). This upward trajectory is expected to continue as Dhanteras festivities encourage increased buying activity, which has positively influenced the prices. Jateen Trivedi, Vice President of Research at LKP Securities, remarked, "Gold prices in MCX remained positive, with Dhanteras adding enthusiasm for long positions."
In parallel, silver contracts for December delivery experienced a significant bounce, rising by ₹786, or 0.81 percent, to settle at ₹98,210 per kg on the MCX. This indicates a robust market response to the ongoing demand.
On the global front, Comex gold futures saw an increase of 0.23 percent, trading at USD 2,762.20 per ounce. According to Saumil Gandhi, Senior Analyst at HDFC Securities, "Gold advanced toward a record in European trading hours amid concerns about the US Presidential election and an escalating US debt crisis, which continue to fuel safe-haven demand for the precious metal."
Market analysts like Pranav Mer, Vice President of Research at BlinkX and JM Financial, have observed a consistent positive trading environment for gold, citing strong buying patterns at every minor correction over the past three trading sessions. This momentum signals a confident outlook among investors, even as they navigate fluctuating prices.
As Dhanteras nears, consumers are faced with choices amid rising costs. While traditional gold retains its allure, the increasing popularity of silver coins indicates a shift in buying habits as people seek value without compromising on the festive spirit.
Key Points:
- Gold prices reached ₹81,400 per 10 grams in Delhi, reflecting a ₹300 increase amid Dhanteras demand.
- Silver prices also saw a rise to ₹99,700 per kg due to increased industrial and consumer demand.
- Many consumers are opting for silver coins instead of traditional gold due to high gold prices.
- Gold futures for December delivery rose to ₹78,744 per 10 grams on the MCX.
- Global gold prices increased, driven by safe-haven demand amid economic uncertainties.
