The domestic bullion market witnessed a significant rally on Wednesday, with gold prices soaring to touch the Rs 1.4 lakh mark for 10 grams. The sharp uptick was fueled by strong momentum in international markets and a weakening rupee against the US dollar.
Substantial Single-Day Gain for Precious Metal
In a major move, gold of 99.9% purity (24 carat) surged by Rs 960 to settle at Rs 1,40,110 per 10 grams. This notable increase brought the price perilously close to its all-time high levels. The trading session on Wednesday, April 24, 2024, reflected robust buying interest among investors and traders.
Similarly, gold of 99.5% purity (22 carat) also experienced a substantial rise. Its price climbed by Rs 880, reaching a new level of Rs 1,28,350 for every 10 grams. This parallel rise across different purities indicates broad-based strength in the precious metals sector.
Silver Shines Alongside Gold
The rally was not confined to gold alone. Silver, often referred to as 'poor man's gold', mirrored the bullish sentiment. The price of silver skyrocketed by Rs 1,400 to finish the day at Rs 83,100 per kilogram. This impressive gain underscores the strong investor appetite for precious metals as a whole during the trading session.
Market analysts pointed to a combination of factors driving this upward trajectory. Primarily, the surge was a direct response to firm trends in global markets, where gold prices gained strength. Concurrently, the Indian rupee depreciated against the US dollar, making dollar-denominated commodities like gold more expensive for domestic buyers. This dual effect created a perfect environment for prices to climb.
Global Drivers and Market Outlook
Internationally, spot gold was trading higher on the COMEX, providing a firm foundation for domestic prices. Geopolitical tensions and expectations regarding US Federal Reserve's monetary policy often serve as key triggers for global gold demand, influencing prices in markets worldwide, including India.
The sharp rise in a single day highlights the volatile yet attractive nature of bullion as an asset class. For retail buyers and jewellers, this jump represents a significant increase in procurement costs. For investors, it marks a positive movement in portfolio value for those holding gold ETFs or physical gold.
Market participants will now closely monitor international cues, currency movements, and domestic demand, especially with the upcoming wedding season, to gauge the sustainability of these price levels. The breach of the psychological Rs 1.4 lakh level sets a new benchmark for the yellow metal in the Indian market.
