Gold prices crossed Rs 1.5 lakh per 10 grams in Delhi on October 19. Prices rose by Rs 400 as festive demand started picking up before Dussehra. Saumil Gandhi said, "Domestic gold prices gained support from improving retail demand and a positive trend in international markets." Silver prices remained unchanged today.
Gold prices have crossed the Rs 1.5 lakh mark per 10 grams in Delhi ahead of Dussehra, raising a key question for festive shoppers: could prices climb further before Diwali?
The price of 99.9% pure gold rose by Rs 400 to Rs 1,50,300 per 10 grams on October 19, compared with Rs 1,49,900 in the previous session, according to local traders. The rise comes as improving jewellery demand and supportive global market trends lift sentiment ahead of India's festive season.
Silver prices, meanwhile, remained unchanged at Rs 2.15 lakh per kilogram for a second consecutive session.
Festive Demand Could Support Gold Prices
Gold demand has started recovering as consumers prepare for Dussehra, Dhanteras and Diwali. Lower prices in recent weeks have encouraged some buyers to return to jewellery stores.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said domestic gold prices gained support from improving retail demand and a positive trend in international markets.
Physical gold also traded at a premium last week for the first time in more than three months, signalling a recovery in buying interest.
Gandhi expects retail demand to strengthen further ahead of Diwali, potentially providing additional support to domestic prices.
Will Gold Prices Rise Further Before Diwali?
Market experts expect festive purchases to support gold, although a sharp rally is not guaranteed.
Vikas Gupta, CEO of Omniscience Capital, said the festive and wedding seasons generally support gold prices. However, the possibility of further US Federal Reserve rate hikes could limit gains in international markets.
Gupta expects a modest festive-season increase, followed by relatively stable prices.
Global Factors Remain Crucial
International gold prices were marginally higher at $4,175.57 per ounce. Spot silver gained more than 1% to $57.63 per ounce.
According to Gaurav Garg, Head of Research at Lemonn, easing crude oil prices and declining US Treasury yields have helped precious metals by reducing inflation concerns.
However, interest-rate expectations, currency movements and geopolitical tensions could influence the next price move.
For festive buyers, the outlook remains uncertain. Gold could receive another boost from seasonal demand, but global economic developments may prevent a sustained rally.