A huge increase in gold prices was seen in the national capital Delhi on Tuesday. According to All India Bullion Association, gold rose by ₹ 3,500 to ₹ 1,28,900 per 10 grams due to increased buying by local jewelers and retailers during the wedding season. After three consecutive days of decline, gold of 99.5% purity also rose by ₹3,500 to ₹1,28,300 per 10 grams (including all taxes), PTI reported.
Tremendous rise in silver also
Like gold, silver also saw strength. Silver prices rose by ₹5,800 to ₹1,60,800 per kg (including all taxes). According to traders, the market has regained its vibrancy before the wedding season. The weakness of the US dollar at the international level has also strengthened gold. A weaker dollar typically increases demand for safe-haven assets such as gold.
Dollar weakened and gold prices increased
HDFC Securities Senior Commodity Analyst Saumil Gandhi said expectations of interest rate cut in December have increased after the soft stance of the Federal Reserve officials. Due to this, the dollar weakened and a rise in gold prices was seen. Spot gold fell 0.09% to $4,131.09 an ounce in the international market. Similarly, spot silver fell 0.40% to $51.15 an ounce.
Gold imports increased almost three times in October
The country’s gold imports almost tripled in October to a record high of $14.72 billion. This was stated in the recent data of the Commerce Ministry. Gold import in October 2024 was $4.92 billion. Overall, imports increased by 21.44 percent to $ 41.23 billion during April-October this financial year, from $ 34 billion in the same period a year ago. The country’s trade deficit (the difference between imports and exports) hit a record high of $41.68 billion in October due to higher gold imports. Gold prices in the national capital are around Rs 1.29 lakh per 10 grams.
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