Gold prices saw a marginal increase on Thursday, with the price of 24-carat gold rising by Rs 10 per 10 grams, trading at Rs 77,900 according to the GoodReturns website. The price of silver also witnessed a rise, increasing by Rs 100, with one kilogram of the precious metal now trading at Rs 97,100.
The price of 22-carat gold also reflected the upward trend, rising by Rs 10 to reach Rs 71,410 per 10 grams. These price movements come amid steady demand for precious metals and ongoing global market volatility.
City-wise Gold Prices
The price of gold varies slightly across different cities in India, primarily due to transportation costs and taxes. Here is a breakdown of the gold rates in major cities:
- Mumbai, Kolkata, and Hyderabad: The price of 24-carat gold stood uniform at Rs 77,900 per 10 grams in these cities, reflecting stable trading conditions. For 22-carat gold, the price was recorded at Rs 71,410 per 10 grams in all three cities.
- Delhi: In the nation’s capital, 24-carat gold was priced slightly higher at Rs 78,050 per 10 grams, while 22-carat gold was trading at Rs 71,560 per 10 grams, reflecting the capital’s tendency to have slightly higher prices due to higher demand and taxes.
- Bengaluru and Chennai: In Bengaluru and Chennai, the price of 24-carat gold mirrored that of Mumbai, Kolkata, and Hyderabad at Rs 77,900 per 10 grams. The price of 22-carat gold was also consistent at Rs 71,410 per 10 grams in both cities.
Silver Prices Across Cities
Silver prices, which often fluctuate alongside gold, also saw a modest increase. In Delhi, Kolkata, and Ahmedabad, the price of one kilogram of silver was Rs 96,900. However, Chennai continued to see a significantly higher price for silver, with one kilogram trading at Rs 102,900, driven by localized demand and supply dynamics.
Global Gold and Silver Market Outlook
On the global front, U.S. gold prices remained below record highs on Thursday as investors awaited key U.S. economic data that could provide insights into the Federal Reserve’s future monetary policy decisions. Spot gold was relatively stable, trading at $2,674.96 per ounce as of 00:25 GMT, having touched a session high of $2,685.16 on Wednesday. This was just shy of the record high of $2,685.42 that was reached on September 26.
The price of spot silver also saw a slight rise of 0.2% to $31.74 per ounce. Meanwhile, other precious metals like platinum and palladium saw gains, with platinum rising 0.8% to $1,001.40 per ounce and palladium firming by 0.3% to $1,026.09 per ounce.
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The global demand for precious metals continues to be influenced by a combination of factors, including investor sentiment, inflationary pressures, and central bank monetary policies. The current uncertainty regarding U.S. inflation data and the Federal Reserve’s interest rate decisions has kept traders on edge, affecting gold and silver prices worldwide.
Factors Driving Precious Metal Prices
Several key factors continue to influence the price of precious metals both domestically and globally:
- Global Economic Uncertainty: Persistent concerns over inflation, geopolitical tensions, and economic slowdowns in various parts of the world continue to support demand for safe-haven assets like gold and silver.
- Federal Reserve Policies: The U.S. Federal Reserve’s interest rate hikes and future guidance on monetary easing play a significant role in influencing gold prices. Higher interest rates often lead to a stronger U.S. dollar, making gold less attractive for investors holding other currencies.
- Rupee-Dollar Dynamics: In India, the gold price is highly sensitive to fluctuations in the value of the Indian rupee against the U.S. dollar. A weaker rupee often results in higher gold prices as the cost of importing the precious metal increases.
- Festive Season Demand: With the festive season approaching in India, demand for gold typically increases, driving up prices. Gold purchases are considered auspicious during festivals like Diwali and Dhanteras, adding to the seasonal price rise.
With gold trading at Rs 77,900 for 24-carat and Rs 71,410 for 22-carat in major cities, and silver rising to Rs 97,100 per kilogram, the precious metals market continues to see moderate gains. Both domestic and global factors, including U.S. economic data, inflation concerns, and festive demand, are likely to influence prices in the near term. Investors are closely watching the global market for further developments that could impact gold and silver prices heading into the final quarter of the year.
