Gold prices ahead of Dhanteras, Diwali: Domestic gold prices have rallied nearly 30% in the past one year and are now hovering around Rs 80,000 per 10 grams level for the last one week. Since last year’s Diwali on November 10, the precious metal has seen its price jump from Rs 60,750 to Rs 78,700 per 10 grams, showing a rise of around 30%, according to Indian Bullion and Jewellers Association (IBJA) data.
Despite the yellow metal’s prices hitting record highs, the demand has not slowed down this festive season and is expected to breach the psychological level of Rs 80,000 per 10 grams before this Diwali. Diwali will be celebrated on October 31 this year.
In 2024 alone, domestic gold prices have surged more than 23%, beating returns from equities by a fair margin. The domestic equity benchmark Sensex has given 10.79% this year.
Also read: Gold rate today on October 24 in Delhi, Mumbai, Kolkata, Chennai: Here are latest gold, silver prices in your city
Will gold prices breach the Rs 1 lakh mark by Diwali next year?
If this rally in gold continues, the price will easily cross the Rs 1 lakh level by next Dhanteras and Diwali considering that the yellow metal has surged nearly 30% since last November. Expecting a similar return over the next year, the precious metal’s price will be around Rs 1,03,000 per 10 grams by Diwali 2025.
As of October 23, 2024, the Indian Bullion and Jewellers Association (IBJA) published rates for gold as follows: Fine Gold (999) 24-karat at Rs 78,703 per 10 grams, 22-karat gold at Rs 72,092 per 10 grams.
Gold is one of the best long-term assets which offers both safety and decent return to its investors. Domestic gold prices have seen a two-fold rise in the last five years and 10-times growth in little over two decades.
There are multiple factors, domestic and global both, responsible for driving the prices of gold and silver in the last couple of years. One of the major demand driving factors was geopolitical tensions in different parts of the globe. In early 2022, Russia-Ukraine war broke out, boosting safe haven appeal of gold among investors globally, and the Middle East tensions further fuelled this rally since October 2023.
Rahul Kalantri,
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