Gold and silver prices witnessed a strong upward move in the bullion market as demand for precious metals picked up ahead of the festive season. In Delhi, gold prices climbed sharply on Monday, while silver also recorded a major increase, taking both metals to fresh highs based on the rates cited in the report.
Gold of 99.9% purity became costlier by ₹2,700 per 10 grams, taking its price to ₹1,23,300 per 10 grams. Silver saw an even sharper movement, gaining ₹7,400 per kilogram to reach ₹1,57,400 per kg.
The latest increase comes at a time when the Indian market is entering an important festive buying period. Demand for gold jewellery, coins and other precious-metal products generally attracts attention around major festivals, including Diwali. At the same time, movements in international bullion markets and the Indian rupee can also influence domestic prices.
Gold Price Climbs to ₹1,23,300 Per 10 Grams
According to the rates cited in the report, gold with 99.9% purity rose by ₹2,700 to ₹1,23,300 per 10 grams on Monday.
In the previous trading session on Friday, the precious metal had closed at ₹1,20,600 per 10 grams. This means the latest session brought a sizeable increase for buyers and investors tracking bullion prices.
Higher festive demand is among the factors supporting domestic gold prices. Gold purchases often receive increased attention ahead of major Indian festivals and the wedding season.
Apart from domestic demand, global market trends are also important. Gold is commonly viewed as a safe-haven asset during periods of economic or geopolitical uncertainty. An increase in international demand can therefore influence prices in India as well.
99.5% Purity Gold Also Becomes Costlier
The rally was not limited to 99.9% purity gold. Gold with 99.5% purity also registered an increase of ₹2,700 per 10 grams in the local bullion market.
Its price climbed to ₹1,22,700 per 10 grams, compared with ₹1,20,000 per 10 grams in the previous trading session.
The sharp movement means consumers planning to purchase jewellery or physical gold during the festive season may have to spend considerably more than they would have at the previous session's rates.
However, retail jewellery prices can differ from quoted bullion rates because the final amount paid by customers may include making charges, taxes and other costs.
Silver Surges by ₹7,400 Per Kilogram
Silver recorded an even bigger increase in absolute terms. The metal jumped by ₹7,400 per kilogram to reach ₹1,57,400 per kg.
It had previously been quoted at ₹1,50,000 per kilogram on Friday.
Silver demand can be influenced by both consumer purchases and industrial requirements. During the festive period, demand for silver coins, utensils, jewellery and gifting products can also increase.
The latest rise therefore puts silver prices firmly in focus alongside gold as buyers prepare for the upcoming festive season.
Global Gold and Silver Markets Move Higher
International bullion markets also showed strength, according to the figures cited in the original report.
Spot gold was reported to have gained around 2% to reach $3,949.58 per ounce. Silver, meanwhile, rose by more than 1% to approximately $48.75 per ounce.
International prices are important for Indian consumers because the country depends significantly on imported gold. Changes in global bullion prices can consequently influence domestic rates.
Currency movements are another major factor. If the rupee weakens against the US dollar, importing gold becomes more expensive in rupee terms, which can add upward pressure to domestic prices even when other factors remain unchanged.
What Is Driving the Rise in Gold Prices?
Several factors can influence gold prices at the same time. Stronger international demand for the precious metal is one of them, particularly when investors seek relatively defensive assets during periods of uncertainty.
The festive season is another important domestic factor. Demand for jewellery, coins and investment products can rise ahead of Diwali and other celebrations, providing support to bullion prices.
The rupee's movement against the dollar can also affect prices. Since international gold is largely priced in US dollars, a weaker rupee can increase the effective cost of imports for Indian buyers.
Global gold and silver prices, investor sentiment, interest-rate expectations, currency movements and domestic physical demand can therefore combine to create sharp day-to-day changes in bullion rates.
What Buyers Should Keep in Mind
The latest rally shows how quickly precious-metal prices can change. People planning to purchase gold or silver for festivals, weddings or investment purposes should check the prevailing rate before making a transaction rather than relying on an older price.
Buyers should also remember that bullion market quotations and final jewellery prices are not necessarily identical. Purity, taxes, making charges and jeweller-specific costs can change the final bill.
With the festive season approaching and global bullion markets remaining active, gold and silver prices are likely to stay closely watched by consumers and investors in the coming days.
