24-Carat Gold Rises Rs 500 To Rs 1,42,500: Why Are Gold Prices Rising Again Ahead Of Diwali?

Gold prices in Delhi rose by Rs 500 to Rs 1,42,500 per 10 grams on Monday, November 2, as jewellers and retailers increased purchases ahead of Diwali. Silver remained unchanged at Rs 1,86,000 per kg. The recovery followed a sharp October correction.

gold rises Rs 500 ahead of Diwali, silver remains steady

Gold prices recovered slightly in Delhi on Monday, November 2, as jewellers and retailers increased purchases ahead of Diwali. The price of 99.9% pure gold (24 carat) rose by Rs 500 to Rs 1,42,500 per 10 grams, recovering some of the losses suffered during a sharp correction in October.

Silver prices, however, remained unchanged at Rs 1,86,000 per kilogram, inclusive of all taxes, according to local traders. The recovery in gold came as festive demand provided support to domestic prices, while the rupee's weakness against the US dollar made imported bullion more expensive.

Despite Monday's gains, both precious metals remain under pressure following their steep declines last month. Market experts believe prices could remain volatile as investors monitor global economic developments, crude oil prices and expectations surrounding US monetary policy.

Silver price today: Rates remain unchanged 

Unlike gold, silver prices remained steady in the national capital on Monday.

The white metal was trading at Rs 1,86,000 per kilogram, inclusive of all taxes. This comes after a steep correction in October, during which silver lost Rs 46,000 per kg from its September 30 price of Rs 2,32,000.

The decline in silver was significantly sharper than that seen in gold, reflecting the volatility in precious metal markets.

In international markets, spot silver gained more than 2% to reach USD 50.25 per ounce on Monday, indicating a recovery in global trading.

Gold price in Delhi today: 24-carat gold rises Rs 500

Gold of 99.9% purity closed at Rs 1,42,500 per 10 grams on Monday, compared with Rs 1,42,000 on Saturday.

The increase comes after a significant correction in October, when gold prices fell by Rs 7,300 per 10 grams from the September 30 level of Rs 1,49,300.

According to market participants, increased buying by jewellers and retailers ahead of Diwali helped the yellow metal recover some of its lost value. A weaker rupee also supported domestic gold prices by increasing the cost of imported bullion.

Gaurav Garg, Head of Research at brokerage firm Lemonn, said gold attempted a recovery after the sharp selling seen towards the end of October. However, he noted that elevated crude oil prices continued to weigh on precious metals.

Gold and silver prices in international markets

Gold also witnessed a recovery in global markets on Monday. Spot gold gained USD 24.18, or nearly 1%, to trade at USD 3,899.73 per ounce.

The recovery followed a sharp decline on Friday, when international gold prices plunged nearly 4% to USD 3,875.55 per ounce, their lowest level in more than a year.

Jateen Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, said spot gold had recovered towards USD 3,900 per ounce.

However, investor sentiment remained cautious amid expectations of higher interest rates and uncertainty surrounding the US election outcome on November 3.

Investors are also closely watching the outlook for US monetary policy, as interest-rate expectations can influence demand for non-interest-bearing assets such as gold.

Gold futures rise on MCX: What should investors expect?

Gold futures also recorded gains on Monday amid fresh buying by market participants.

On the Multi Commodity Exchange (MCX), the December gold contract rose by Rs 281, or 0.2%, to Rs 1,38,766 per 10 grams. The contract recorded a business turnover of 2,497 lots.

Analysts attributed the increase to fresh positions created by traders amid firm spot demand. In New York, gold futures gained 0.83% to USD 3,906.81 per ounce.

Meanwhile, crude oil prices fell around 4% following reports that US President Donald Trump was willing to give diplomacy another chance to resolve tensions between Washington and Tehran.

Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, expects gold prices to consolidate in the near term. However, he cautioned that further weakness cannot be ruled out as tensions in West Asia continue and international gold remains below the USD 4,000-per-ounce mark.

Monday's recovery offers some relief after October's steep correction. However, market volatility remains a key factor, and prices could move in either direction depending on global developments.

(With inputs from agencies)