Gold opens flat at Rs 78,545; silver nears Rs 1 lakh per kg
The rise in precious metals is being attributed to a combination of factors, including strong consumer demand, a weaker US dollar, and increased buying by central banks, particularly in emerging markets.
Gold prices have surged to a historic high in 2024, posting the largest annual gain in 45 years, driven by ongoing geopolitical tensions in the Middle East and expectations of further rate cuts by the US Federal Reserve. International gold prices have jumped over 32.5% this year, marking the highest increase since 1979, while silver has also seen a significant rally, climbing 37.5%.
In India, MCX gold has risen 23.6%, with silver prices surging by 32.9%, their biggest gains since 2020. Silver’s strong performance is attributed to industrial demand, especially from the renewable energy and electric vehicle sectors, alongside investment interest. Analysts believe silver could continue to rally, buoyed by expectations of a recovery in the Chinese economy and a persistent supply-demand deficit.
The rise in precious metals is being attributed to a combination of factors, including strong consumer demand, a weaker US dollar, and increased buying by central banks, particularly in emerging markets.
Despite market volatility affecting equities, with both Sensex and Nifty down by over 5%, the outlook for precious metals remains positive, especially with the approaching festive season expected to further boost demand for gold jewellery in India, and silver continuing to gain from industrial demand.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.