Gold prices across key Indian markets soared to new heights on Monday, driven by increased retail demand and global bullion gains, as the country anticipates a busy festive and wedding season.
Gold prices in India climbed sharply on Monday, extending a month-long rally as the market moved closer to the country’s busy festive and wedding season. According to GoodReturns, retail demand has been rising as shoppers make earlier purchases ahead of the period when prices often move even higher.
In Chennai, 24-carat gold rose to Rs.1,55,660 per 10 grams, while 22-carat gold reached Rs.1,42,700 and 18-carat gold climbed to Rs.1,20,500. Hyderabad tracked the same move, with 24-carat gold quoted at Rs.15,566 a gram, 22-carat at Rs.14,270 a gram and 18-carat at Rs.12,050 a gram. GoodReturns said silver held steady in both cities at Rs.2,55,000 a kilogram.
On the global front, Reuters reported that spot gold gained 0.4% to $4,391.49 an ounce by 0520 GMT, after touching a more than two-month high last week. U.S. gold futures for December delivery were also higher, while spot silver rose 1.4% to $65.57 an ounce. The move reflected a softer dollar and expectations that the Federal Reserve may not need to raise rates in September.
Nirmal Bang Securities said precious metals were trading slightly firmer and expected Indian bourses to remain range-bound to marginally higher through the day. The brokerage linked the recent advance to weaker U.S. retail sales data, which has added to pressure on the dollar and made bullion cheaper for many buyers. The latest jump also stands out against earlier, much lower Hyderabad rates reported in August 2023, when 24-carat gold was around Rs.59,400 per 10 grams, underscoring how far prices have moved in the past year.
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