Mumbai: New Delhi witnessed a historic surge in gold prices on Tuesday as the yellow metal breached the Rs 1.3 lakh per 10-gram mark for the first time. According to the All India Sarafa Association, gold of 99.9 percent purity jumped Rs 2,850 to Rs 1,30,800 per 10 grams, up from the previous close of Rs 1,27,950. Similarly, gold of 99.5 percent purity also advanced by Rs 2,850, reaching Rs 1,30,200 per 10 grams.
The price rally comes amid heavy buying from retailers and jewellers ahead of Dhanteras, a key gold-buying festival in India. Market analysts said strong seasonal demand, especially in the run-up to Diwali and the wedding season, significantly boosted prices.
Silver Touches Rs 1.85 Lakh/kg After Five Days of Gains
Silver continued its winning streak for the fifth consecutive day, spiking Rs 6,000 to an all-time high of Rs 1,85,000 per kilogram. In the previous session, silver had closed at Rs 1,79,000 per kg. Traders attributed the sharp gains to increased industrial and investment demand alongside the festive push.
The surge in silver prices also reflects heightened consumer sentiment, especially in traditional silver-buying regions and among artisans preparing for seasonal demand.
Weaker Rupee and Global Factors Fuel Domestic Rally
Adding fuel to the price rally was the Indian rupee's depreciation, which dropped 12 paise to revisit its all-time low of 88.80 against the US dollar. A weaker rupee makes imports, including gold and silver, more expensive, translating into higher domestic prices.
Internationally, spot gold retreated slightly after hitting a record high of USD 4,179.71 per ounce, last trading at USD 4,140.34, still up 0.72 percent. Spot silver also dipped 1.92 percent to USD 51.36 per ounce after reaching a peak of USD 53.54.
Despite the global pullback, domestic prices remain buoyed by seasonal demand and currency pressure.
