Gold prices in Delhi climbed Rs 400 on Monday to touch Rs 1,50,300 per 10 grams, driven by improving festive demand ahead of Dussehra and firm global cues. Silver, meanwhile, stayed steady for the second straight session at Rs 2.15 lakh per kilogram, local traders said.
The 99.9 per cent pure metal rose from Friday’s closing level of Rs 1,49,900 per 10 grams, prices inclusive of all taxes. Bullion markets will remain closed on Tuesday on account of Dussehra, so Monday’s close sets the tone for the festive week.
MCX futures follow global lead
On the Multi Commodity Exchange (MCX), December gold futures were trading at Rs 1,48,379 per 10 grams in early trade, up Rs 461 or 0.31 per cent from the previous close of Rs 1,47,918. The yellow metal touched an intraday high of Rs 1,48,499 and a low of Rs 1,48,120.
Silver futures for December delivery rose Rs 826 or 0.39 per cent to Rs 2,12,013 per kilogram, from a previous close of Rs 2,11,187. The white metal hit an intraday high of Rs 2,12,750 during the session.
On the international COMEX platform, gold opened steady near $4,185 and edged toward $4,200, up about 0.50 per cent. COMEX silver opened near $57.15 and moved toward $57.80, gaining 0.89 per cent and outperforming gold for the day.
Fed remarks steady nerves
Commodity market experts said remarks by US Federal Reserve Chair Kevin Warsh in Bangkok had reduced the implied probability of an October interest rate increase to below 20 per cent, lending support to non-yielding assets like gold and silver.
However, hotter US inflation readings, including the sharpest monthly rise in producer prices in four and a half years, keep a December rate hike on the table. The October 27-28 FOMC meeting will be the next key test for the metals, analysts noted.
A firmer rupee, meanwhile, limited the upside for domestic prices. A stronger currency reduces the benefit of rising international prices for Indian buyers, since imported metal becomes relatively cheaper in rupee terms, experts said.
Festive demand returns
“Gold prices moved higher in the domestic market on Monday, supported by a positive trend in overseas markets and improving retail demand as the festive season begins,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
He added that physical demand had improved, with gold trading at a premium last week for the first time in more than three months as lower prices encouraged jewellery purchases. “Retail demand is expected to strengthen further ahead of Diwali, India’s biggest festival, supporting the domestic gold market,” Gandhi said.
Vikas Gupta, smallcase manager and CEO of Omniscience Capital, said the festive and wedding seasons typically drive gold prices higher, though the likelihood of US Federal Reserve rate hikes could keep global prices under pressure. “Domestic gold prices are likely to see a small festive season surge but remain stable post that,” he said.
What the charts say
For MCX gold, immediate resistance sits at Rs 1,48,600, followed by Rs 1,50,000 to Rs 1,50,700, according to commodity market experts. Downside support is placed at Rs 1,48,000, then Rs 1,45,300 to Rs 1,46,000 and further down at Rs 1,43,000 to Rs 1,43,700.
For MCX silver, immediate resistance is at Rs 2,14,000 to Rs 2,15,000, which capped gains on Friday, followed by Rs 2,19,000 to Rs 2,20,000.
Both metals have been under pressure in October so far, down more than 1 per cent and 2 per cent respectively. The gold-silver ratio has widened to around 72, with silver underperforming as higher yields and a softer risk backdrop weighed on the white metal.
FAQs
What is the gold price in Delhi today?
Gold prices rose Rs 400 to Rs 1,50,300 per 10 grams for 99.9 per cent pure metal in Delhi on Monday, inclusive of all taxes.
Why are gold prices rising?
Firm global cues, easing expectations of a US Fed rate hike in October, and improving festive demand ahead of Dussehra and Diwali are supporting prices.
What is the silver price today?
Silver remained steady for the second straight session at Rs 2.15 lakh per kilogram in Delhi. On MCX, December silver futures rose to Rs 2,12,013 per kilogram.
Will bullion markets be open tomorrow?
No. Bullion markets will remain closed on Tuesday on account of Dussehra.
What should gold investors watch next?
The October 27-28 US Federal Reserve meeting is the next key trigger. Experts expect a small festive-season surge in domestic prices, followed by stability.
Stay with Informeia for daily gold and silver price updates through the festive season.
