Precious Metals Rebound Ahead of Diwali, Gold Rises 0.50% and Silver Surges by ₹3,500
Precious metals see a resurgence as gold and silver prices rise ahead of Diwali, attracting buyers and investors alike.
New Delhi, November 2 (Daily Kiran) : Precious metals have shown a notable rebound as the week begins, following a period of decline. As Diwali approaches, the recovery in gold and silver prices has captured the attention of jewelry buyers and investors. While prices remain significantly below their record highs, increased buying activity in both domestic and international markets has strengthened these metals.
On the international Comex market, gold saw a rise of approximately 0.33%, trading at $3,911.60 per ounce. Silver performed even better, climbing 2.24% to reach $50.380 per ounce.
Analysts suggest that after recent sharp declines, investors are taking advantage of lower prices, providing support to the market. This positive trend in global markets has also influenced the Indian market, where gold is trading around ₹1.39 lakh per 10 grams, while silver is approximately ₹1.82 lakh per kilogram.
On the Multi Commodity Exchange (MCX), gold for December delivery opened at ₹1,39,003 per 10 grams, up ₹518 or 0.37% from the previous close of ₹1,38,485. During the day, it peaked at ₹1,39,179, marking a rise of ₹694 or 0.50%.
Silver for December delivery opened at ₹1,81,094, an increase of ₹1,962 or 1.09% from its previous close of ₹1,79,132. At one point during the day, silver surged by ₹3,569, or 1.99%, reaching a high of ₹1,82,701 per kilogram.
Despite this recent surge, gold and silver prices are still considerably lower than their all-time highs. Gold is approximately 28% below its peak, while silver has experienced a decline of over 40%.
Market experts attribute this recovery to several factors, including the upcoming mid-term elections in the United States, rising global uncertainties, and recent heavy sell-offs prompting investors to buy at lower levels. Additionally, ongoing tensions in the Middle East, high crude oil prices, and signals from the U.S. economy are influencing investor strategies.
As the U.S. mid-term elections approach, investors are adopting a cautious stance. Recent significant declines in the U.S. stock market have also heightened demand for safe investment options.
Looking ahead, experts believe that the trajectory of gold and silver will depend on the U.S. Federal Reserve’s interest rate policy, the dollar index, bond yields, and crude oil movements. Should global uncertainties persist, further recovery in precious metals may be on the horizon.
