Gold

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.

As of Wednesday, the international market recorded a gold price of $2,000.38 per ounce, while US gold futures remained steady at $2,002.40.

India, the world's second-largest gold-consuming nation next to China, bucked the trend to clock a double digit growth of 10 per cent in purchases of the yellow metal to 210.2 tonne in Q3 compared to 191.7 tonnes in the same period last year.

The sharp increase in the price of the yellow metal comes ahead of the auspicious Dhanteras occasion for buying gold on November 10, as well as the approaching festive and wedding season when the demand for jewellery shoots up.

The price is based on the simple average of closing gold price of 999 purity of previous three business days from the date of redemption as published by the India Bullion and Jewellers Association Ltd (IBJA).

Gold is currently trading at $1,960, and has been fluctuating in the range of $1,880-$1,960 during the last one month

The US 10 year Yield after dropping by more than 2 per cent in the earlier session is inching higher once again, Dollar index also continues inch higher hovering around 10 week-high above 104 mark, he said.

Hopes of a demand recovery from India may also contribute to the trend. However, it is unlikely for major rallies due to uncertainties over US rate hikes and the performance of US assets, he said.

However, the trajectory could swiftly change. The moment the US Federal Reserve hints at a potential pause in its rate hikes or even the possibility of an interest rate cut, gold prices are likely to surge, the analyst said.

Be that as it may, a policy rate cut by the US Federal Reserve combined with higher-than-average inflation will result in a structural up move in gold prices, said Quantum Asset Management Company (AMC).