New Delhi: Gold prices have been on a remarkable upward trajectory this year, frequently hitting record levels. Despite a slight dip in November, the precious metal continues to rise, marking the fourth consecutive month of gains. Analysts say gold is now on track for its best annual performance in 46 years, since 1979.
On the Multi Commodity Exchange (MCX), gold for February 5 delivery rose by over ₹700, opening at ₹1,28,352 per 10 grams compared to the previous session’s close of ₹1,27,667. By 11:42 AM, it was trading at ₹1,28,380, up ₹713.
The upward momentum is attributed to expectations that the U.S. Federal Reserve may cut interest rates in December. Bloomberg reports that despite delays in economic data due to a U.S. government shutdown, gold continues its strong performance. Globally, gold was trading at around $4,170 per ounce, posting over a 2% weekly gain. Lower interest rates tend to benefit gold, as it provides no interest income but serves as a safe-haven investment.
Why Prices Are Rising:
Gold remained above the $4,000 per ounce mark even after a slight November correction. Increased inflows into gold ETFs over the past three weeks, along with central bank purchases worldwide, have bolstered demand. In the third quarter alone, central banks increased their gold purchases by 10% year-on-year, buying a total of 220 tonnes.
Silver Prices Also Climb:
Silver prices have mirrored gold’s gains. March 5 delivery silver was trading at ₹1,67,931 per kilogram at 12:10 PM, up 1.17% from the previous close of ₹1,65,987. During early trading, prices ranged from ₹1,66,980 to ₹1,68,553 per kilogram.
As the wedding season approaches, both gold and silver are witnessing heightened demand, pushing prices to new highs and setting the stage for potentially record-breaking annual gains.
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