Silver Gets Closer to Rs 1 Lakh, Gold Crosses Rs 78,000
CHENNAI: Both gold and silver prices made new highs in the Indian market today – silver at Rs 99,000 per kg and gold at Rs 78,400 per 10 gm. The firm prices will restrict the demand of the precious metals in volume terms during the ongoing festive season.
At the Multi-Commodity Exchange, gold made a high of Rs 78,400, gaining Rs 361 per 10 gm from the close of the previous session. The international gold rates have been driving the Indian prices. In the international market, gold made a fresh high of $2740 per ounce and silver moved up to a 12-year high level of $34.50 per ounce.
According to Kedia Commodities, the September data of the global gold ETFs saw inflows for the fifth consecutive month. In September, gold ETFs saw $1.4 billion worth inflows.
The global uncertainties, including geo-political tensions and the central banks lowering their interest rates have already been lending support to gold. From Rs 63,225 at the beginning of the year, gold has already appreciated 24 per cent.
According to the industry, the gold jewellery demand during the ongoing festive quarter would be 5 -10 per cent lower in volume terms.
“In the northern markets, gold purchases were 15 to 20 per cent till a few days back and in the South it was almost 50 per cent down. But now buyers have realised that prices are not coming down and hence they are returning to stores. We expect Dhanteras to do 20 -22 tonnes of business as usual. But the festive quarter volumes would be 5 -10 per cent lower as almost half of the potential buyers made their wedding purchases in July-August itself, when the duty cut was announced,” said Saiyam Mehra, Vice Chairman, GJC.