The ongoing gold rally is driven by several global factors.
Gold and Silver prices in India: Gold prices in India have soared to a new all-time high, with 24k gold reaching Rs 77,410 per 10 grams, marking a Rs 600 jump from the previous close, according to the latest figures from the Indian Bullion and Jewellers Association (IBJA) on Saturday. Silver prices also saw a rise, climbing to Rs 92,283 per kg, up from Rs 91,600 the previous day.
The ongoing gold rally is driven by several global factors.
Diwali Sales Take a Hit Amid Price Surge
The surge in gold prices, up by 22% in 2024 and nearly 30% on a Diwali-to-Diwali basis, has had a noticeable impact on Diwali sales, a period traditionally marked by increased demand for bullion. Retailers are witnessing slower sales as consumers struggle to afford the same volumes of gold due to the steep price hikes.
To combat the slowdown, jewelers are offering discounts on making charges to entice customers. A Mumbai-based bullion dealer remarked, "Jewellers aren’t feeling too confident about Diwali sales this year due to rising gold prices. Discounts on making charges are being offered to help maintain customer interest during the festive season."
As gold prices continue to climb, it remains uncertain how the market will evolve, especially with geopolitical tensions and economic factors influencing the price trajectory. Traders and consumers alike will be closely watching the trends to see if further increases are on the horizon.
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