Gold Prices Soar to Rs 81,400 as Dhanteras Demand Peaks

Gold prices rose by Rs 300 to reach Rs 81,400 per 10 grams in the national capital on Tuesday, approaching their record high due to a surge in demand from jewelers and retailers for Dhanteras, as reported by the All India Sarafa Association. This increase comes amid significant purchasing activity, as consumers opt for gold ahead of the auspicious festival.

Silver also saw a boost, increasing by Rs 200 to Rs 99,700 per kg, driven by rising demand from industrial units and coin manufacturers. This marks an uptick from Monday's closing price of Rs 99,500 per kg.

Traders noted a shift in consumer behavior, with silver coins becoming the preferred choice for token purchases during Dhanteras, as many buyers are opting for silver over traditional gold due to the high gold prices.

Gold of 99.5% purity jumped Rs 300, nearing its all-time peak of Rs 81,000 per 10 grams. On Monday, the rates for gold with 99.9% and 99.5% purity had closed at Rs 81,100 and Rs 80,700 per 10 grams, respectively.

In futures trading on the Multi Commodity Exchange (MCX), gold contracts for December delivery increased by Rs 178, or 0.23%, to Rs 78,744 per 10 grams. Jateen Trivedi, VP of Research Analysis at LKP Securities, commented, "Gold prices in MCX remained positive, with Dhanteras adding enthusiasm for long positions. Increased buying on this auspicious day has pushed prices above Rs 80,000 in the physical jewellery market."

Silver contracts for December delivery also experienced gains, rising by Rs 786, or 0.81%, to Rs 98,210 per kg on the MCX.

On a global scale, Comex gold futures climbed by 0.23% to USD 2,762.20 per ounce. Saumil Gandhi, Senior Analyst at HDFC Securities, explained, "Gold advanced toward a record during European trading hours on Tuesday amid concerns about the US Presidential election and escalating US debt crisis, which continue to fuel safe-haven demand for the precious metal."

Pranav Mer, VP of Research (Commodity & Currency) at BlinkX and JM Financial, noted that gold has been trading positively, with buying observed during every small correction over the past three trading sessions.

Also Read: Gold Prices Hit New Record High in India, Silver Follows Suit