Gold prices in India surged by Rs 3,200 to a record Rs 1,34,800 per 10 grams in the national capital, driven by strong festive-season demand and stockists building positions ahead of Dhanteras, according to the All India Sarafa Association. Gold of 99.5% purity also rose to Rs 1,34,200 per 10 grams from Rs 1,31,000, reflecting robust buying activity by jewellers and retailers.
Analysts attributed the gains to seasonal demand, safe-haven buying amid global uncertainties, and expectations of higher sales during Dhanteras and Diwali. Jateen Trivedi of LKP Securities noted that the US government shutdown, a weaker dollar, and delayed economic data continued to support gold as a defensive asset, sustaining bullish momentum.
Conversely, silver fell sharply by Rs 7,000 to Rs 1,77,000 per kilogram, down from Rs 1,84,000, even after briefly hitting a lifetime high of USD 54.48 per ounce globally. Spot gold in international markets eased slightly to USD 4,303.73 per ounce following a record high of USD 4,379.29.
Market experts highlighted geopolitical tensions, particularly US-China trade issues and banking sector stress, as key factors influencing precious metals. Darshan Desai of Aspect Bullion & Refinery emphasized that despite the global price correction, the overall sentiment for gold remains constructive, fueled by expectations of US monetary easing, central bank purchases, and ongoing risk aversion among investors.
