Gold Price Today: To our surprise, the yellow metal is believed to be a safe asset for people and investors, and the prices fluctuate due to many reasons. A few weeks ago, when the metal was at lower prices, the volatility in the market fueled the rates, and the prices rallied upwards. The demand for the metal is not directly proportional to the price, but the demand does affect the rate. However, the contribution of demand to the fluctuation of the rate is minimal.
The metal has marked its best weekly performance since last March. In March 2024, gold hit its lowest at ₹66,410 for 10 grams of 24-carat gold.
10 grams of 22-carat gold stood at ₹66,410, whereas today the prices are ₹74,000 for 22-carat and ₹77,685 for 10 grams of 24-carat. On Friday, the metal would have broken all records as it closed at ₹79,535. Crossing this rate would give the metal a new record high.
The prices on the Multi Commodity Exchange (MCX) recorded high rates, which were mainly due to major events happening around the world. The escalation in the Russia-Ukraine war, the rising geopolitical tensions, the US presidential election, market volatility, and international market volatility are the key reasons determining the rise in gold rates.
MCX Gold, Silver Price Today
In futures trade, gold contracts for December delivery traded in green at +0.09% at Rs 77,685 per 10 gm on the Multi Commodity Exchange at the time of writing this article. While silver contracts for December delivery traded in red at +0.96% at Rs 90.791 per 1 kg in the early morning trade on Sunday.
Gold, Silver Price Today
| City | Gold Price (22 carat in Rs/gm) | Silver Price (Rs/kg) |
| Delhi | 7,315 | 92,000 |
| Noida | 7,315 | 92,000 |
| Lucknow | 7,315 | 92,000 |
| Mumbai | 7,300 | 92,000 |
| Bengaluru | 7,300 | 92,000 |
| Chennai | 7,300 | 1,01,000 |
| Pune | 7,300 | 92,000 |
| Ahmadabad | 7,300 | 92,000 |
| Kolkata | 7,300 | 92,000 |
| Hyderabad | 7,146 | 1,01,000 |
We Will Explore Top Reasons That Are Fueling The Yellow Metal Prices-
Market Volatility–
The market determines the prices of major commodities and shares. Investor sentiment plays a vivid role in all this.
According to a report by Mint, the stock market’s volatility has become a key factor influencing gold prices. Brandon Thor, Gold Expert and CEO of Thor Metals Group, stated, “Gold is a simple yet powerful investment driven by three key factors: currency strength, geopolitical uncertainty, and market volatility. The stock market’s unprecedented decade-long bull run, driven by financial engineering like buybacks of shares and quantitative easing, has created a fragile foundation. Rising interest rates and inflation threaten corporate profitability, while overvaluation heightens correction risks. Geopolitical tensions, domestic divisions, and global uncertainties further amplify the gold case.”
The US Presidential Elections-
The US Presidential elections had a major impact on the international market and the Indian market as well. After the massive one-sided victory of Donald Trump, the market saw a versatile dip in graphs, determining the prices of the majority of commodities on MCX.
According to Mint, expert who pointed towards the economic uncertainty, said, “Uncertainty stemming after Donald Trump’s victory in the US Presidential Elections and anticipated changes in US economic policies have propelled the US dollar index to a two-year high. Gold found strong support at the ₹73,500 per 10 gm level ($2,540 per ounce in international markets) before rebounding sharply.”
Russia-Ukraine War And Geopolitical Reasons-
The rising geopolitical tensions around the world, and even a minor development or a major step taken in the Russia-Ukraine conflict, disturb the whole market sentiment and disrupt ongoing price graphs. The yellow metal had been declining for the past few weeks after Diwali, but gold rates advanced when tensions between Russia and Ukraine increased.
According to Sugandha Sachdeva, Founder of SS WealthStreet, “Gold prices advanced by around 5 per cent during the week, marking their best weekly performance since March 2023 and snapping a three-week decline. The rally was fueled by escalating geopolitical tensions between Russia and Ukraine, which have intensified missile attacks, driving safe-haven flows into gold.”
According to Mint, Praveen Singh, Associate VP—Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said, “The gold price rally is sparked by safe-haven demand on disturbing developments in the ongoing Russia—Ukraine war. On Thursday, Ukraine reported that Russia fired an ICBM on Ukraine, the first time in this war.”
These are the top reasons why the yellow metal prices rallied upwards. Amid all this, the demand for gold is high due to its aspect as a safe-haven metal, the festive season, and the wedding season in the nation. As an overview, it is expected that prices can fluctuate higher anytime and break records.
“Overall, the outlook for gold prices is looking positive until there is any ease in the Russia-Ukraine war. So, we can expect the gold prices to continue their uptrend next week and break above the current hurdle. So, much depends on the developments in the Russia-Ukraine war. Hence, gold investors are advised to remain vigilant about the latest Russia-Ukraine news,” said Anuj Gupta, Head of Currency and Commodity at HDFC Securities.
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(Disclaimer: This article is for informational purposes only and should not be construed as an investment advice. Prior to making an investment, conduct thorough research and consult with your financial advisor.)
