Gold prices hit record ₹1.4L in Delhi: What's the reason?
What's the story
Gold prices in New Delhi have hit a new high of ₹1,40,850 per 10g on today. The spike comes after a rise of ₹2,650 from Monday's closing price of ₹1,38,200 per 10g. The surge is mainly due to strong trends in the global markets, geopolitical tensions, and expectations of multiple rate cuts by the US Federal Reserve next year.
Price surge
Gold prices have surged by 78% this year
This year, gold prices in India have jumped by ₹61,900 or a whopping 78.4%, from ₹78,950 per 10g on December 31, 2024. The precious metal's rally is further fueled by geopolitical tensions and a weaker dollar. Saumil Gandhi from HDFC Securities noted that "the latest round of rallies is driven by expectations that the Federal Reserve will deliver more than one rate cut in 2026."
Silver surge
Silver prices also witness significant rise
Along with gold, silver prices have also witnessed a massive spike. The white metal surged by ₹2,750 to touch a record of ₹2,17,250 per kg (including all taxes) today. This is an increase from Monday's closing price of ₹2,14,500 per kg after a sharp rise of ₹10,400 per kg in the previous session.
International market
Global gold prices approach $4,500 per ounce
In the international markets, spot gold rose by $54.3 or 1.22% to hit a record of $4,498 per ounce. Spot silver also rose 1.4% to breach the $70-per-ounce mark for the first time in overseas trade this year.