Precious metal prices in the national capital experienced a sharp revival on Wednesday as festival shoppers stepped into the market. A combination of seasonal domestic purchases ahead of Dhanteras and strong positive momentum across international exchanges lifted spot gold by Rs 4800 to Rs 1,46,600 per 10 grams. Figures released by the All India Sarafa Association show that gold of 99.9 percent purity had settled at Rs 1,41,800 per 10 grams during Tuesday's session, before posting this steep single-day jump.
Silver Jumps Rs 9000 in a Single Trading Session
Industrial demand and jewellery purchases combined to create an equally sharp upswing for silver. The white metal surged by Rs 9000 to touch Rs 1.93 lakh per kilogram on Wednesday. Just a day prior, the metal had closed trading at Rs 1.84 lakh per kilogram. Soumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, noted that healthy domestic festive demand alongside a solid recovery in overseas trading underpinned Wednesday's bullion rally.
Recovery Follows an Eight Percent Drop in October
Wednesday's sharp recovery arrives right after a difficult month for bullion investors. According to Rajeev Sharan, Head of Research at Brickwork Ratings, gold had retreated by nearly 8 percent from its lifetime peak during October. That decline was triggered by a rising US dollar, escalating bond yields, and diminishing expectations regarding interest rate cuts by the US Federal Reserve, all of which prompted widespread profit-booking among market participants.
Current Festive Gains Remain Subdued Compared to Last Year
Analyzing long-term price action, Rajeev Sharan pointed out that the current festive season has witnessed far less dramatic gains than the preceding one. Since the last festive period, gold prices have risen by only 5 to 7 percent. In sharp contrast, during the previous year's Dhanteras, prices had logged an astounding year-on-year surge of approximately 65 percent, indicating that the market has undergone consolidation this year.
Global Exchanges See Precious Metals Rebound Strongly
Overseas bullion platforms also experienced decisive buying interest during the session. Spot gold advanced by 113.72 dollars or 3 percent to trade at 4043.93 dollars per ounce, successfully crossing back above the 4000-dollar mark. Concurrently, spot silver gained 4.5 percent to trade at 52.03 dollars per ounce. Praveen Singh, Commodity Head at Mirae Asset Sharekhan, explained that a weakening US dollar following the Democratic Party's victory in the US midterm elections provided solid tailwinds to precious metal prices.
