Precious metal prices in the domestic market received a noticeable lift on Monday, spurred by reviving retail jewellery purchases ahead of Dussehra and firm cues across international trading desks. Bullion counters in the national capital saw gold surge past the Rs 1.50 lakh threshold once again, as seasonal demand and upcoming wedding preparations encouraged physical buyers back into jewellery stores.
Delhi Bullion Market Records Fresh Gains
According to bullion traders in Delhi, standard gold of 99.9 percent purity witnessed an increase of Rs 400 on Monday, settling at Rs 1,50,300 per 10 grams. This upward movement followed the preceding trading session on Friday, when the yellow metal had concluded at Rs 1,49,900 per 10 grams. Meanwhile, industrial metal silver experienced a calm session, maintaining an unchanged rate for the second consecutive trading day at Rs 2.15 lakh per kilogram. Bullion trading counters will observe a holiday on Tuesday, 20 October, on account of Dussehra.
Physical Inflows and Festive Buying Trends
Market observers pointed out that physical demand is showing clear indications of revival after a sluggish stretch. HDFC Securities senior commodity analyst Saumil Gandhi stated that improving retail demand alongside supportive global markets assisted the domestic price recovery. Gandhi noted that spot demand gathered strength, leading gold to trade at a premium for the first time in over three months last week. A recent softer price patch gave jewellery shoppers an opportune entry point, triggering fresh orders. Gandhi anticipates that retail demand will strengthen further ahead of Diwali, providing sustained domestic price support.
Crude Oil Cool-Off and Global Influences
Developments in international macro factors also played a constructive role in supporting the bullion complex. Gaurav Garg, head of research at brokerage platform Lemon, noted that softening crude oil valuations coupled with retreating yields on US treasury bonds alleviated broader inflationary concerns, which directly bolstered precious metal sentiment. In overseas spot deals, gold traded with marginal variation around $4,175.57 per ounce, whereas global silver advanced by more than 1 percent to reach $57.63 per ounce.
Wedding Season Demand and Near-Term Outlook
Looking ahead toward the festive and wedding season, financial analysts expect firm but measured domestic price action. Vikas Gupta, chief executive officer at Omniscience Capital, highlighted that festive calendars traditionally usher in higher demand for bullion. Gupta noted that domestic gold prices are likely to see a modest bounce during the festive stretch before stabilising thereafter. He added that the potential for the US Federal Reserve to hike interest rates could continue capping extensive gains in the global market, preventing runaway price rallies.
