Gold Prices Surge to New Record High: 24K Gold Hits ₹78,990 per 10 Grams

Gold prices surge to new high in India

Gold Prices Surge to New Record High: 24K Gold Gold prices in India have surged to a new all-time high of ₹77,410 per 10 grams, rising by ₹600 from the previous close, according to the Indian Bullion and Jewellers Association (IBJA) on Saturday. Silver prices also climbed, reaching ₹92,283 per kilogram, up from ₹91,600 the day before.

This strong performance is largely driven by expectations of further interest rate cuts in the U.S., with additional reductions anticipated soon. Jateen Trivedi, vice-president and research analyst of commodities and currency at LKP Securities, noted that gold’s upward trend on the Multi Commodity Exchange (MCX) has been evident since it dipped below ₹68,000 earlier this year, and its current rally above ₹77,500 marks a substantial rise.

Traders attribute the recent spike in gold prices to heightened geopolitical risks and the depreciation of the rupee, which is trading below ₹84 against the U.S. dollar. Since gold is primarily imported, a weaker rupee makes the metal more expensive in India. Additionally, the ongoing tensions involving Israel, Lebanon, and Iran are driving safe-haven buying, further boosting gold prices.

In 2024, gold has delivered a 22% return so far, and on a Diwali-to-Diwali basis, prices have increased by around 30%, making it one of the top-performing assets of the year.

Gold Prices Surge to New Record High: 24K Gold The festive season in India typically drives increased bullion sales, but this year, record-high gold prices are affecting demand, prompting dealers to offer discounts. According to Reuters, Bachhraj Bamalwa, partner at Indian jewellery retailer Nemichand Bamalwa & Sons, noted that the ongoing price surge is dampening demand, as consumers are purchasing smaller quantities since they need to spend significantly more for the same volume of gold they initially planned to buy.

Jewellers are feeling uncertain about Diwali sales this year due to the rising prices. To attract customers, many are offering discounts on jewellery making charges to encourage sales during the festive season, according to a bullion dealer from a private bank in Mumbai.

Gold Prices Surge to New Record High: 24K Gold Looking forward, the upward price trend remains strong, with a potential target of ₹78,500 in the near future, according to Trivedi. On the downside, the key support level is around ₹75,000, which provides a solid foundation for any short-term declines. He further added that as long as expectations for interest rate cuts and ongoing geopolitical tensions continue, the bullish outlook for gold is likely to stay intact.

Gold Prices Surge to New Record High: 24K Gold Gold prices in India are expected to continue rising, driven by international market trends as Middle East tensions fluctuate. Gold prices in India have surpassed ₹78,000 for 24K gold per 10 grams and are approaching ₹79,000. Both gold and silver prices have hit new record highs, though this has dampened demand, forcing Indian jewellers to offer discounts on sales.

As of early Saturday, October 19, gold prices surged by ₹1 to ₹100, with 24K gold reaching an all-time high of ₹78,990 per 10 grams. Prices for 22K and 18K gold were at ₹72,410 and ₹59,250 per 10 grams, respectively. In cities like Delhi, Vadodara, and Ahmedabad, 24K gold prices crossed ₹79,000 per 10 grams, hitting ₹79,140 in Delhi and ₹79,040 in Vadodara and Ahmedabad. In cities such as Chennai, Kerala, Mumbai, Kolkata, Bangalore, Hyderabad, and Pune, gold prices stood at ₹78,990 per 10 grams.

Silver prices are also nearing ₹1,00,000 per kilogram, with prices climbing to ₹99,100 in early trading on Saturday. In cities like Chennai, Hyderabad, and Kerala, silver prices have already exceeded ₹1,05,000 per kilogram, while in Bangalore, silver prices are lower at ₹85,900 per kilogram. In Mumbai, Kolkata, Pune, Delhi, and Ahmedabad, silver is priced at ₹99,100 per kilogram.

At the Multi Commodity Exchange (MCX), December 2024 gold futures hit a new high of ₹77,839 per 10 grams before settling at ₹77,750. Similarly, MCX silver futures with December expiry reached an intraday high of ₹95,521 per kilogram, closing at ₹95,470.

In the international market, spot gold reached a new lifetime high of $2,722.60 per ounce before ending at $2,721.68, up by 1.06% on Friday. U.S. gold futures for December also hit a record high of $2,737.80 per ounce, closing at $2,736.40, up by 1.07%.

According to a  report, physical gold dealers in India have been forced to offer discounts this week as record-high prices reduced demand ahead of key festivals. Dealers offered discounts of up to $8 per ounce over domestic prices (which include a 6% import duty and 3% sales tax), compared to a $3 premium last week.

Bajaj Finserv noted on its website that while there may be slight fluctuations in gold prices next week, the market will continue to be influenced by global tensions, demand and supply factors, and economic uncertainties. Keeping track of these factors is crucial for predicting future gold rates.