In the early trade on Friday, the price of gold experienced a substantial increase, with 24-carat gold witnessing a rise of Rs 380, selling at Rs 58,910 for ten grams. Similarly, silver prices surged by Rs 500, with one kilogram of the precious metal trading at Rs 72,600. The price hike was consistent across major Indian cities, reflecting the current global market trends.
In specific regions, the price of 22-carat gold also rose, marking an increase of Rs 350 and reaching Rs 54,000. Notably, the prices in various cities such as Mumbai, Kolkata, and Hyderabad remained on par, with ten grams of 24-carat gold trading at Rs 58,910. In Delhi, Bengaluru, and Chennai, the prices ranged from Rs 59,060 to Rs 59,070 for the same quantity of gold.
Meanwhile, the US gold prices experienced a slight decline on Thursday, influenced by a strengthening dollar and Treasury yields, following a higher-than-expected rise in consumer prices in September. However, experts suggest that the prevailing signs of an economic slowdown in the US could potentially support gold prices. Edward Moya, a senior market analyst at OANDA, anticipated that gold could trade within the $1,860-$1,920 range in the near future.
Gold serves as a safe investment option during times of economic and political uncertainty. However, the prospect of higher interest rates tends to increase the opportunity cost of holding non-yielding bullion, impacting its market dynamics.
Apart from gold, the silver market also witnessed a decline, with spot silver losing 1.2% to $21.79 per ounce. Additionally, platinum and palladium prices also experienced a downturn, falling by 2.2% and 2.9% respectively.
The surge in prices indicates the ongoing fluctuations in the global market, with investors and traders closely monitoring the trajectory of precious metal prices in response to the evolving economic landscape.