As the festive season unfolds with Diwali, Dhanteras, and Govatsa Dwadashi, gold and silver prices are scaling new heights. The price of 24-carat gold is approaching the Rs 80,000 per 10 grams mark, largely driven by the traditional increase in demand during this period. Purchasing gold around the festivities is common, serving both as an investment and as gifts for loved ones.
Week-on-week, gold prices have experienced notable fluctuations, influenced by rising geopolitical tensions and heightened festive demand. Regarded as a safe-haven investment, gold remains a popular choice for investors seeking assurance and stability in uncertain times.
Gold Yields over 64% in Last Two Year
Gold prices have surged nearly 37% over the past year, driven by fluctuating currency rates and ongoing geopolitical instability. This substantial increase compared to October of last year underscores gold’s enduring appeal as a safe-haven investment during uncertain times.
Also ReadExpect modest returns in Samvat 2081, say experts
A two-year analysis reveals even more dramatic growth, with gold prices soaring by 64% since October 2022. This sharp rise highlights the strong influence of global factors, including economic concerns and geopolitical tensions, on the demand for the precious metal. As currency volatility and external pressures persist, gold continues to be a key asset for investors seeking stability.
Experts on Gold & Silver Outlook
Commenting on the gold outlook Rahul Kalantri, VP Commodities, Mehta Equities said that Gold and silver experienced profit-taking after reaching record highs, driven by strong gains in the dollar index and U.S. 10-year bond yields. Increased uncertainties surrounding the U.S. elections spurred safe-haven demand for the U.S. dollar and bonds. The dollar index hit a 3-month high, surpassing the 104 mark, while U.S. 10-year bond yields also exceeded 4.25%. A global equity market sell-off, along with the likelihood of fewer rate cuts by the Federal Reserve, contributed to the profit-taking in gold and silver.
Kalantri also added that however, ongoing geopolitical tensions and the trend towards de-dollarization continue to lend support to precious metals. The Bank of Canada’s decision to cut interest rates by 50 basis points on Wednesday also helped buoy gold and silver prices at lower levels. Gold has support at $2,710-$2,688, with resistance at $2,740-$2,755. Silver has support at $33.40-$33.00, and resistance at $33.98-$34.25. In INR terms, gold has support at Rs 77,550- Rs 77,340, with resistance at Rs 78,060-Rs 78,240.
» Read More
