Gold prices touch record highs amidst strong bullion market demand

his remarkable increase, observed over the past 18 days, is attributed to heightened demand driven by central banks purchasing gold reserves and speculation surrounding potential interest rate cuts by the US Federal Reserve

Team Asianet Newsable

First Published Mar 11, 2024, 1:49 PM IST

Gold prices are continuing their upward trajectory, reaching unprecedented levels in both domestic and international markets. The surge in gold prices has seen the precious metal cross the significant milestone of Rs 67,000 per 10 grams in the domestic bullion market, while achieving a record high of $2172 per ounce in the global market.

This remarkable ascent in gold prices has been witnessed over the past 18 days, with a notable increase of Rs 5000 per 10 grams from the fourth week of February 2024. Presently, gold prices in Chennai have surpassed Rs 67,000, while in Delhi, they hover around Rs 66,410 per 10 grams.

Experts attribute this surge in gold prices to several factors, including heightened demand spurred by central banks worldwide purchasing gold reserves to bolster their local currencies. Additionally, market speculation surrounding potential interest rate cuts by the US Federal Reserve has further fueled demand for gold.

The prospect of reduced interest rates is anticipated to devalue the dollar, subsequently driving up the prices of gold.

The sustained increase in gold prices underscores the enduring appeal of the precious metal as a safe-haven asset amidst global economic uncertainties. Investors and market participants are closely monitoring developments in both the bullion market and macroeconomic indicators to gauge the future trajectory of gold prices.

India holds the 9th position globally in gold reserves, currently owning 803.58 tonnes of gold, as per data from the World Gold Council website. In contrast, the United States tops the list with 8,133.46 tonnes of gold reserves. Despite a recent surge in gold prices, silver prices have stabilized following a decline of approximately 2.5 per cent in January and February.

Let us check the gold prices in some of the major cities

Delhi

22 carat gold: ₹ 6089 per gram
24 carat gold: ₹ 6641 per gram

Mumbai

22 carat gold: ₹ 6074 per gram
24 carat gold: ₹ 6626 per gram

Kolkata

22 carat gold: ₹ 6074 per gram
24 carat gold: ₹ 6626 per gram

Chennai

22 carat gold: ₹ 6149 per gram
24 carat gold: ₹ 6709 per gram

Thiruvananthapuram

22 carat gold: ₹6,379
24 carat gold: ₹6,075

Thane