Gold prices surge by ₹4,800 ahead of Dhanteras, silver also crosses ₹1.93 lakh

New Delhi: With the onset of the festive season, Indian markets have become vibrant. Jewelry showrooms are seeing a surge of customers, especially just before Dhanteras. Meanwhile, if you're planning to buy gold or silver for this festival, this news will have a direct impact on your budget.

After a lull of the past few weeks, the bullion market has suddenly seen significant activity. Increased demand from local jewelers, along with strong signals from foreign markets, has sent precious metal prices soaring.

New rate of gold and silver in Delhi

According to the All India Sarafa Association, the price of 99.9% pure gold in the national capital, Delhi, rose sharply by ₹4,800 on Wednesday. Gold, which closed at ₹1,41,800 per 10 grams on Tuesday, has now reached ₹1,46,600 per 10 grams, including all taxes. Not only gold, but silver also surprised buyers. The price of silver has seen a massive jump of ₹9,000 in a single day. In the previous trading session, the price of silver was ₹1.84 lakh per kilogram, which has now increased to ₹1.93 lakh per kilogram, including all taxes.

Why did gold and silver suddenly become expensive?

This rise in prices is due to both domestic and global factors. A Senior Commodity Analyst says that a strong recovery in foreign markets, coupled with increased festive demand in the country, has supported gold. He says this rise in prices may also provide some relief to those shopping for the holidays. Gold prices had fallen by approximately 8% from their peak in October. At that time, a strengthening of the US dollar, rising bond yields, and diminished expectations of an interest rate cut by the Federal Reserve led to profit-booking by traders, leading to a drop in prices.

He also pointed out an important point: last Dhanteras, gold prices rose by approximately 65% ​​year-on-year. However, this time, compared to previous festive seasons, prices have risen by only 5 to 7%. This suggests some stability in market prices for ordinary consumers.

Impact of US elections or movement of global markets

Looking at foreign markets, gold and silver prices are also seeing a strong rally. Spot gold has jumped $113.72, or 3 percent, to reach $4,043.93 per ounce. Gold has once again surpassed the crucial $4,000 mark. Silver is also trading at $52.03 per ounce, up 4.5 percent.

Senior Analyst links this surge to US politics. He says the dollar has weakened following the Democratic victory in the US mid-term elections, boosting precious metals. He explains that with Democrats controlling both houses of the US Congress, regulatory scrutiny in the technology sector could become more stringent, and investment in data centers could also slow. This will have a direct negative impact on the US economy, which is driving gold prices higher.