Gold prices in India reached an all-time high, driven by the peak wedding season and the upward trend in international rates for this precious metal.
Chennai witnessed the most significant surge, with the price reaching Rs 64,530 per 10 gm for 24-carat gold during morning trade. Meanwhile, in Mumbai, Delhi, Bengaluru, and Kolkata, the price hovered around Rs 63,760 per 10 gm, marking an increase of Rs 810 from the previous day.
On the global front, gold prices also experienced a notable uptick, reaching a seven-month high with spot prices climbing by 1.6 percent to $2,069.10 per ounce on Friday. The surge in international prices directly impacts the domestic market in India, as the country imports a substantial quantity of gold.
The global increase in gold prices is attributed to the depreciation of the dollar against major currencies, currently nearing a three-month low. This depreciation makes gold more affordable in other foreign currencies, contributing to the rising trend.
Further influencing the gold market is the anticipation that the Federal Reserve might reduce interest rates in the coming months. The prospect of lower interest rates diminishes the appeal of financial instruments compared to gold, which is traditionally considered a safe investment.
In the domestic market, the demand for gold remains robust, particularly during the marriage season, as the precious metal continues to be a popular gift for brides and grooms. The confluence of international and domestic factors has propelled gold prices to unprecedented levels, capturing the attention of investors and consumers alike.
(With Agency Inputs)
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