New Delhi: Gold prices saw a sharp jump in the national capital on Tuesday as buying increased ahead of the wedding and festive season. According to the All India Sarafa Association, gold rose by Rs 3,500, reaching Rs 1,28,900 per 10 grams.
This rise comes after three straight days of falling prices. Gold of 99.5 percent purity also became costlier by Rs 3,500, trading at Rs 1,28,300 per 10 grams, including all taxes.
Silver Prices Also Move Up
Silver followed gold’s trend and showed strong buying interest from the market. The white metal gained Rs 5,800 and reached Rs 1,60,800 per kilogram in Delhi. Traders said that jewellers and retailers have increased their purchases as customers begin shopping for the upcoming marriage season.
Why Gold Is Becoming Costlier?
Apart from wedding demand, another reason for the rise in gold prices is the weak US dollar. When the dollar becomes weaker against other major currencies, gold becomes more attractive for investors, especially as a safe-haven asset.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said that gold prices moved up due to a softer US dollar and growing expectations that the US Federal Reserve may cut interest rates in December after dovish statements from Fed officials.
International Market Update
In the global market, however, gold prices were slightly down. Spot gold was trading 0.09 percent lower at USD 4,131.09 per ounce in New York. Spot silver also slipped 0.40 percent to USD 51.15 per ounce. Despite the slight global weakness, the strong domestic demand in India pushed prices higher locally.
