Gold Price Update: Gold Jumps ₹800/10g in One Week, Silver Up ₹2,000/kg

Gold Price Update: Gold Rises ₹800/10g, Silver Surges ₹2,000/kg Over the Week

Gold and silver prices in India have shown significant movement over the past week, driven by market dynamics, international trends, and increasing central bank demand. Both precious metals, widely regarded as safe havens in times of economic uncertainty, saw notable gains. Gold has increased by ₹800 per 10 grams in the last seven days, while silver prices surged by ₹2,000 per kilogram. Let’s dive into the latest market trends, expert opinions, and city-specific rates for gold and silver as of October 15.

Gold and Silver Futures on MCX

The Multi Commodity Exchange (MCX) witnessed a slight decline in the December futures contracts for both gold and silver on October 15. Gold futures contracts for December opened flat at ₹75,980 per 10 grams, down by 0.09% or ₹66. Silver futures contracts for December also saw a decrease, trading at ₹90,715/kg, down by 0.02% or ₹21.

Despite these short-term dips in futures trading, the broader trend over the past week has been bullish, with gold prices update rising by 1.26% and silver appreciating by a more significant margin.

Weekly Performance of Gold Prices Update and Silver Prices Update

In the past week, gold prices have increased by ₹800 per 10 grams, indicating a steady upward trend. The 24-carat gold rate in India was ₹76,050 per 10 grams on October 4, 2024, with the rate for 24-carat gold per gram being ₹7,605. Meanwhile, 22-carat gold was priced at ₹69,795 per 10 grams.

Silver, on the other hand, saw a sharp rise. As of October 15, silver was quoted at ₹90,880 per kilogram, up ₹2,000 from last week’s price of ₹88,530/kg. This significant jump reflects both domestic and international factors driving up the demand for silver.

Gold Price Trends in Major Indian Cities

Gold prices vary across different Indian cities due to local taxes and transportation costs. Here’s a look at the latest rates across major cities in India on October 15.

1. Mumbai:

• Gold Price Update: In Mumbai, 24-carat gold was priced at ₹76,050 per 10 grams on October 15. A week earlier, on October 8, gold was trading for ₹75,100 per 10 grams. While there was a slight dip on October 14 (₹76,390), the overall weekly trend remains positive.
• Silver Price Update: Silver in Mumbai was priced at ₹90,770/kg on October 15, down from ₹91,810/kg the previous day but still higher than the ₹88,650/kg it was trading at a week ago.

2. Kolkata:

• Gold Price Update: As the Durga Puja festival begins, gold prices in Kolkata are closely watched. On October 15, the 24-carat gold rate in Kolkata stood at ₹75,950 per 10 grams, slightly down from ₹76,190 on October 14, but higher than the ₹75,000 rate from the previous week.
• Silver Price Update: Silver in Kolkata was priced at ₹90,650/kg on October 15, a rise from last week’s price of ₹88,530/kg, indicating strong demand during the festive season.

3. Delhi:

• Gold Price Update: With Diwali approaching, gold buying has picked up in North India. In Delhi, gold was trading at ₹75,920 per 10 grams on October 15, down slightly from ₹76,160 the previous day. A week earlier, the price was ₹74,970 per 10 grams.
• Silver Price Update: Silver was priced at ₹90,610/kg on October 15, down from ₹91,530 the previous day. A week ago, silver was trading at ₹88,490/kg, showing a weekly gain.

4. Chennai:

• Gold Price Update: In Chennai, gold prices update were quoted at ₹76,270 per 10 grams on October 15, showing a consistent rise from the previous week’s price of ₹75,310 per 10 grams on October 8.
• Silver Price Update: The silver price in Chennai was ₹91,030/kg on October 15, down slightly from ₹91,950/kg the day before, but still higher than last week’s price of ₹88,900/kg.
• 

Expert Outlook: Gold Primed for Bullish Growth

Nigel Green, the CEO of deVere Group, provided an optimistic outlook for gold in the near term. According to Green, central banks across the globe are aggressively increasing their gold reserves as they look to reduce reliance on the US dollar. This surge in central bank demand, particularly from countries like China, is a significant driver for the precious metal’s price.

Central bank gold purchases have accelerated to levels not seen in decades, a trend that gained momentum following the Russia-Ukraine war. This shift away from US dollar-denominated assets is being driven by countries looking to hedge against financial sanctions and economic instability.

“Gold buying has surged to nearly three times the level seen before 2022,” said Green. He also mentioned that demand is expected to continue growing into 2025, not just as a portfolio diversification measure, but also as a strategic move to mitigate risks. China has been a key player in this movement, with its central bank adding to gold holdings for ten consecutive months in 2023, and the momentum continued into 2024 with net purchases of 290 tonnes recorded in the first quarter.

Factors Driving Gold Price Update and Silver Prices Update

1. Central Bank Buying: As mentioned earlier, central banks around the world are increasing their gold reserves to reduce exposure to the US dollar and protect against geopolitical risks.
2. Geopolitical Tensions: Ongoing tensions, particularly between the US and China, as well as the Russia-Ukraine conflict, have prompted investors to seek safe-haven assets like gold.
3. US Federal Reserve Policies: The Federal Reserve’s interest rate cuts have also bolstered gold prices. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors.
4. Festive Season Demand in India: In India, the world’s second-largest consumer of gold, the festive season typically drives up demand for both gold and silver. With Durga Puja and Diwali approaching, consumer interest in purchasing jewelry and ornaments has contributed to the price surge.

Conclusion

Gold and silver have both shown significant upward momentum over the past week, with prices rising across major Indian cities. The bullish outlook for gold, fueled by central bank buying, geopolitical tensions, and the Federal Reserve’s monetary policies, suggests that these trends may continue in the coming months. As festivals like Diwali and the wedding season approach, the demand for gold and silver is likely to remain strong, keeping the precious metals in focus for both investors and consumers alike.