21.1 C
New Delhi
Monday, November 4, 2024

Gold reaches new high of INR 78,300 on safe-haven buying and festive demand

Published:

Gold͏͏ reached͏͏ a͏͏ record͏͏ high͏͏ of͏͏ INR 78,300͏͏ per͏͏ 10͏͏ grams͏͏ on͏͏ Wednesday,͏͏ driven͏͏ by͏͏ safe-haven͏͏ buying͏͏ amid͏͏ escalating͏͏ tensions͏͏ in͏͏ the͏͏ Middle͏͏ East͏͏ and͏͏ declining͏͏ US͏͏ bond͏͏ yields.͏͏ Market͏͏ participants͏͏ anticipate͏͏ that͏͏ the͏͏ yellow͏͏ metal͏͏ could͏͏ rise͏͏ further͏͏ if͏͏ global͏͏ geopolitical͏͏ uncertainties͏͏ intensify.͏͏ Prices͏͏ increased͏͏ by͏͏ INR 1,500͏͏ per͏͏ 10͏͏ grams͏͏ compared͏͏ to͏͏ Tuesday.

Increased͏͏ Foot͏͏ Traffic͏͏ in͏͏ Zaveri͏͏ Bazaar:

Kumar͏͏ Jain,͏͏ spokesperson͏͏ for͏͏ the͏͏ India͏͏ Bullion͏͏ &͏͏ Jewellers͏͏ Association͏͏ (IBJA),͏͏ stated,͏͏ “Zaveri͏͏ Bazaar͏͏ is͏͏ bustling͏͏ with͏͏ activity͏͏ due͏͏ to͏͏ the͏͏ rise͏͏ in͏͏ gold͏͏ prices.͏͏ Foot͏͏ traffic͏͏ on͏͏ Wednesday͏͏ increased͏͏ by͏͏ up͏͏ to͏͏ 20%͏͏ compared͏͏ to͏͏ the͏͏ previous͏͏ week.”

Continue͏͏ Exploring:͏͏ Gold jewellery demand͏͏ set͏͏ to͏͏ rise͏͏ with͏͏ 18%͏͏ volume͏͏ growth͏͏ anticipated,͏͏ says͏͏ Nuvama͏͏ Report

Festive͏͏ Season͏͏ Boosts͏͏ Gold͏͏ Sales:

He͏͏ noted͏͏ that͏͏ the͏͏ Navratri͏͏ festival,͏͏ starting͏͏ Thursday͏͏ and͏͏ lasting͏͏ until͏͏ October͏͏ 12,͏͏ is͏͏ an͏͏ auspicious͏͏ time͏͏ for͏͏ purchasing͏͏ gold.͏͏ “With͏͏ the͏͏ potential͏͏ for͏͏ prices͏͏ to͏͏ rise͏͏ further,͏͏ consumers͏͏ are͏͏ visiting͏͏ stores͏͏ to͏͏ pre-book͏͏ gold͏͏ for͏͏ delivery͏͏ during͏͏ Navratri,”͏͏ he͏͏ explained.

Consumers͏͏ are͏͏ primarily͏͏ purchasing͏͏ gold͏͏ jewellery͏͏ in͏͏ preparation͏͏ for͏͏ the͏͏ upcoming͏͏ wedding͏͏ season,͏͏ which͏͏ runs͏͏ from͏͏ November͏͏ through͏͏ February-March.

The͏͏ surge͏͏ in͏͏ demand͏͏ is͏͏ prompting͏͏ karigars,͏͏ or͏͏ goldsmiths,͏͏ to͏͏ work͏͏ 12͏͏ hours͏͏ a͏͏ day͏͏ instead͏͏ of͏͏ their͏͏ usual͏͏ eight.

“It͏͏ is͏͏ India’s͏͏ ‘China͏͏ moment.’͏͏ China͏͏ has͏͏ been͏͏ buying͏͏ gold͏͏ as͏͏ a͏͏ hedge͏͏ against͏͏ inflation,͏͏ and͏͏ now͏͏ Indians͏͏ are͏͏ also͏͏ turning͏͏ to͏͏ the͏͏ yellow͏͏ metal,”͏͏ Jain͏͏ remarked.

“Previously,͏͏ we͏͏ recommended͏͏ that͏͏ 15%͏͏ of͏͏ one’s͏͏ investment͏͏ be͏͏ allocated͏͏ to͏͏ gold.͏͏ However,͏͏ with͏͏ gold͏͏ prices͏͏ now͏͏ providing͏͏ annual͏͏ returns͏͏ of͏͏ 18-20%,͏͏ the͏͏ investment͏͏ should͏͏ increase͏͏ to͏͏ 25%,”͏͏ said͏͏ Bhargav͏͏ Vaidya,͏͏ a͏͏ gold͏͏ trade͏͏ analyst.

“The͏͏ key͏͏ drivers͏͏ behind͏͏ gold’s͏͏ stellar͏͏ performance͏͏ are͏͏ the͏͏ onset͏͏ of͏͏ a͏͏ rate͏͏ cut͏͏ cycle͏͏ in͏͏ the͏͏ US͏͏ and͏͏ strong͏͏ expectations͏͏ for͏͏ further͏͏ rate͏͏ cuts͏͏ in͏͏ upcoming͏͏ Federal͏͏ Reserve͏͏ meetings,”͏͏ said͏͏ Colin͏͏ Shah,͏͏ MD͏͏ of͏͏ Kama͏͏ Jewelry.

Continue͏͏ Exploring:͏͏ Jewellery͏͏ stores͏͏ see͏͏ gold rush͏͏ as͏͏ customs͏͏ duty͏͏ cut͏͏ spurs͏͏ buying͏͏ frenzy

Related articles

Recent articles

× Drop a, Hi?