By Admin 
Gold Prices Surge: As the festivals of Dhanteras and Diwali are approaching, gold prices are gaining momentum. The situation is that in just three days the price of gold has increased by Rs 6000. On Wednesday alone, the price increased by Rs 2,600 to reach its all-time high of Rs 1,26,600 per 10 grams. Overall, even before Diwali, gold has crossed Rs 1.25 lakh. Whereas experts had predicted gold to reach this range by Diwali.
Why is the price of gold increasing?
Amidst the geopolitical uncertainties created by first tariffs and now the prolonged shutdown in America, people are betting on gold as a safe investment, due to which prices have increased. According to the All India Bullion Association, gold with 99.9 percent purity closed at Rs 1,24,000 per 10 grams with an increase of Rs 700 on Tuesday (October 7), whereas a day earlier on Monday (October 6) it had increased by Rs 2,700.
Along with gold, silver also rose
In Delhi’s bullion market on Wednesday, the price of gold of 99.5 percent purity increased by Rs 2,600 to its all-time high of Rs 1,26,000 per 10 grams. Whereas on Tuesday it closed at the level of Rs 1,23,400 per 10 grams.
A tremendous rise in bullion prices was also seen in foreign markets. Spot gold rose by almost 2 percent to a record level of $ 4,049.59 an ounce. Along with gold, the price of silver is also increasing. On Wednesday, the price of silver increased by Rs 3,000 to its record high of Rs 1,57,000 per kg. On Tuesday, silver closed at the level of Rs 1,54,000 per kg.
Price of spot gold and silver also increased
Spot gold rose above the crucial level of $4,000 an ounce for the first time due to demand for safe investments amid concerns over government shutdown due to the US shutdown. Spot silver in global markets increased by more than 2 percent to reach a high of $ 48.99 an ounce. “Geo-political tensions in Ukraine, political instability in France and Japan and rising expectations of a Fed rate cut amid the ongoing data blackout also boosted the rally,” said Kainat Chainwala, AVP Commodity Research, Kotak Securities.
So many tons of gold will be sold in Diwali
Amidst the continuously rising prices of gold, experts have also predicted that there will be record breaking sales of gold in Diwali this year. According to India Bullion and Jewelers Association, there is a possibility of selling about 45 tonnes of gold between October 18 and 23. Amidst the continuously rising prices of gold, people have given up hope of the rate reducing.
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