Gold Crosses Rs 76,900: Why Are Prices Rising? How Far Will It Rise This Diwali?
The price of gold in the bullion market of Delhi rose by Rs 600 to Rs 76,950 per 10 grams on Monday. (Representative/AP)
According to Chintan Mehta the demand for gold as a safe investment option has further increased due to rising geopolitical tensions, especially due to the war in West Asia, as Israel continues to attack Gaza
The upward trend in gold prices is continuing and the price of gold has already crossed Rs 76,000 in this Pitru Paksha. Usually, there is a slowdown in the markets during this period as people avoid shopping and auspicious events owing to their religious beliefs.
However, gold prices keep fluctuating owing to global developments. Hence, even though there is a slowdown in the market, the price of gold has not dropped.
Gold prices are reaching new record highs every day. Amidst the rise in gold prices in the international market, the price of gold in the bullion market of Delhi rose by Rs 600 to Rs 76,950 per 10 grams on Monday. In the previous trading session on Thursday, gold with 99.9% purity closed at Rs 76,350 per 10 grams.
“Gold prices have increased by 27 per cent this year, and it has reached an all-time high,” Chintan Mehta, the Chief Executive Officer (CEO) of Abans Holdings, said.
Mehta said that the demand for gold as a safe investment option has further increased due to rising geopolitical tensions, especially due to the war in West Asia, as Israel continues to attack Gaza.
Sources attributed the rise in gold prices in local markets to the increasing demand from jewelers and retailers.
Amidst the continuous rise in gold, many have questioned whether the trend will continue in the festive season as well. Anuj Gupta, Commodity Head at HDFC Securities, said that following the interest rate cut in the United States, gold prices have increased. Since the interest rate is going to be cut in future as well, the rise in gold prices may continue. The price of gold also benefited from the weakening of the dollar index.
Anuj Gupta said that till Diwali, the price of gold will remain in the range of Rs 75,000 to Rs 76,000. The price of silver is expected to remain between Rs 92,000 to Rs 95,000.
