According to commodity specialists, the recent steep increase in oil prices—up roughly 12% in the previous week—is mostly to blame for the spike in gold prices. But there are also other elements at work. The yellow metal is now considered to be a “secure” investment choice by investors due to rising global inflation and the erratic stock market.
According to analysts, the MCX gold cost per 10gm might hit Rs 53,000 by Diwali while spot gold prices are expected to rise to $1,780 (about Rs 1.47 lakh) per ounce by that time. However, some profit-booking may also occur. However, a key factor supporting local gold prices is the weakening of the rupee versus the US dollar to a historic low of 82.40.
Gold prices in Delhi started to rise in the beginning of 2022 after going dormant for a while, as the choppy equities markets compelled investors to look for safe-haven assets like gold.
However, gold prices were unchanged on Sunday morning in Delhi, Chennai, Kolkata, and Mumbai. For 10 gm of 22-carat gold, the price in Delhi was Rs 48,010, while for 10 gm of 24-carat gold, the price was Rs 52,370.
For 10 gm of 22-carat gold in Chennai, the price was Rs 48,400, and for 24-carat gold, it was Rs 52,800. In Kolkata, the price of precious metal is Rs 47,850 for 10 g of 22-carat gold and Rs 52,200 for 10 g of 24-carat gold.
Mumbai’s gold pricing per 10 gm of 22- and 24-carat gold has been Rs. 47,850 and Rs. 52,200, respectively. Last week, the yellow metal encountered resistance in international markets at the crucial $1,740 (Rs 1,44,128) per ounce barrier, while on the local market, Rs 52,100 per 10 gm functioned as a significant roadblock for prices.
