Business News Desk – Gold prices continue to rise. According to All India Bullion Association, gold prices in the national capital rose by Rs 250 to Rs 78,900 per 10 grams on Wednesday due to buying by jewelers. This is the new all-time high level of gold. In the last trading session, this precious metal had closed at Rs 78,650 per 10 grams.
There was a rise in the prices of silver. Silver prices rose by Rs 1,000 to Rs 93,500 per kg on increased demand from coin makers as well as industrials. On Tuesday, silver had closed at Rs 92,500 per kg. At the same time, gold of 99.5 percent purity rose by Rs 250 to reach a new record level of Rs 78,500 per 10 grams, while its previous closing price was Rs 78,250 per 10 grams.
Why is the price of gold increasing?
Traders say that there is strong demand for gold from local jewelers. The reason for this is the festive season along with weddings. Additionally, equity markets have also declined, due to which investors are turning to gold as it is considered the safest investment. Jatin Trivedi, VP Research Analyst, Commodity & Currency, LKP Securities, said, “Gold prices remained higher as MCX led gains, while Comex gold traded above $2,675. Traders are hopeful that the Federal Reserve will cut interest rates. “Will continue on its path.” Trivedi says that this is expected to increase the prices of gold, because after the cut in interest rates, investors start turning towards gold. Gold steadied slightly after hitting a record high in September, as traders expected the US central bank to slow its pace of interest rate cuts.
Traders are not in a hurry, however, traders are still adopting a slightly cautious approach. Modi Manav Modi, senior analyst, commodity research at Lal Oswal Financial Services Ltd., said, “Mixed comments from US Federal Reserve officials have kept traders worried. Governor Christopher Waller has welcomed recent signs of resilience in the US economy and stable inflation. Citing that they support a cautious approach towards further rate cuts in the coming months.”
Fed officials are divided on how far to cut interest rates by the end of the year. The US Fed is moving towards further easing the policy. Markets are waiting for economic data from the central bank to get a clear picture about the direction of interest rate cuts. Uncertainty related to the US presidential election and rising geopolitical tensions are supporting the strength of gold. Motilal Oswal’s Modi said that this week the focus will be on US retail sales, industrial production (IIP) and China’s gross domestic product (GDP). Will be on the data, which will give information about the direction of bullion prices in the near future.
