Gold prices have moved sharply higher ahead of Dhanteras and Diwali, making festive purchases more expensive for buyers. In Delhi’s bullion market, the price of 99.9 per cent pure gold jumped by Rs 2,200 per 10 grams on Thursday, November 5, reaching Rs 1,48,800, including all taxes. According to the All India Sarafa Association, gold was trading at Rs 1,46,600 per 10 grams in the previous session. With this latest rise, the precious metal has moved closer to the Rs 1.5 lakh mark. This is the second consecutive day of gains in the domestic market.
Silver Also Moves Higher
Silver prices have also recorded a significant increase ahead of the festive season. On Thursday, the price of silver rose by Rs 1,500 to reach Rs 1,94,500 per kilogram, including all taxes. In the previous trading session, it was priced at Rs 1,93,000 per kilogram. The rise has brought silver closer to the Rs 2 lakh mark. Market traders say Dhanteras is considered an auspicious occasion for buying gold and silver. As a result, jewellers, retailers and stockists have increased their purchases ahead of the festival. Rising investment demand has also supported the prices of precious metals.
Gold Rises Rs 16,400 in a Year
A comparison with last year's Dhanteras shows how sharply gold prices have increased. On October 18 last year, gold was priced at Rs 1,32,400 per 10 grams. This means the metal has become Rs 16,400 more expensive over the past year. Silver has also recorded a major rise. Its price was around Rs 1.70 lakh per kilogram last Dhanteras, compared with Rs 1,94,500 now. According to Dhruv Joglekar, Assistant Fund Manager at Monarch PMS, gold prices have increased by around 13 per cent since last Dhanteras. During this period, domestic prices remained largely in the range of Rs 1.40 lakh to Rs 1.48 lakh per 10 grams.
Gold Delivers Strong Returns
Dhruv Joglekar said gold has delivered strong returns despite considerable price fluctuations during the year. He noted that its performance has been better than what is generally expected from an asset used for protecting capital. The rise in prices has also attracted attention from investors looking for a relatively stable store of value. With gold approaching Rs 1.5 lakh per 10 grams, buyers planning jewellery purchases this festive season are facing significantly higher prices than they did last year.
Global Gold Crosses $4,100
The rally is not limited to the Indian market. Gold prices have also climbed in international trading. Spot gold rose by $65.12, or around 2 per cent, to reach $4,125.25 per ounce. It also crossed the important $4,100 level. The international price movement has added to the upward trend in domestic bullion prices. The rise in global gold rates is one of the factors influencing the Indian market, where prices have already reached record levels ahead of the festive season.
Silver Gains in Global Market
International silver prices have also moved higher. Spot silver gained around 1 per cent to reach $52.73 per ounce. The increase in global prices, along with stronger domestic demand ahead of Dhanteras, has supported the rally in precious metals. With gold nearing Rs 1.5 lakh per 10 grams and silver approaching Rs 2 lakh per kilogram, festive buyers are facing a much higher bill this year. Compared with last Dhanteras, both metals have become considerably more expensive.
