Priyanka
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Gold prices continue to climb, showing no signs of slowing down. Over the past 49 days, the cost of gold has risen from ₹76,544 to ₹86,020 per 10 grams—a jump of ₹9,506. On Friday alone, the MCX gold price closed at ₹86,020 per 10 grams, marking a weekly gain of about 1.57%.
What's Driving the Increase?
The surge in gold isn’t new; similar trends were seen last year. However, this year’s increase has been more pronounced. Factors such as the outcome of the US presidential election, which brought Donald Trump’s victory into focus, and the looming possibility of a trade war have all contributed to growing investor interest in gold. This has set the stage for continued upward momentum, and experts believe the rally is far from over.
Looking Ahead to Dhanteras and Diwali
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, shared his insights with India TV. He explained that ongoing geopolitical uncertainties, inflationary pressures, and a weakening rupee are keeping gold prices robust. Technically, he noted that international spot gold is approaching the $2900 mark, with strong support around $2845–2826. Gupta forecasts that by Dhanteras and Diwali, gold on MCX could reach a record high of ₹87,000 per 10 grams, which might even push the price of 24-carat gold in the Indian market to around ₹90,000 per 10 grams.
Silver Joins the Rally
Following gold’s upward trend, silver is also gaining traction. According to estimates from Samco Securities, silver could hit a target of ₹1,17,000 within the next 12 months. Even though silver has already surged by 41% since December 2022—delivering a 26% return compared to the Nifty—there is potential for further gains. For instance, the silver April contract on MCX was trading at around ₹96,891 per kilogram last Friday, just slightly down by ₹222 per kilogram. Experts believe silver is on course to reclaim the ₹1 lakh mark soon.
Why Silver is Set to Rise
A key factor behind silver's potential growth is the weakening dollar index (DXY). When the dollar falls, it takes more dollars to buy the same amount of silver, pushing up its price. Additionally, silver’s critical role in manufacturing electric vehicles, solar panels, and other industrial products means that increased industrial demand is likely to support its price. Compared to gold, silver has seen a more moderate price rise so far, setting the stage for further appreciation.
