Gold prices hits lifetime high in India

In the midst of the peak wedding season and escalating international rates of the precious metal, a lifetime high in gold prices was witnessed in India. Leading the surge, Chennai saw the price for 24-carat gold reaching Rs 64,530 per 10 grams in morning trade.

In Mumbai, Delhi, Bengaluru, and Kolkata, the price of gold stood at Rs 63,760 per 10 grams, marking an increase of Rs 810 from the previous day.

On Friday, spot prices in the international market surged to a seven-month high, with a 1.6% gain, reaching $2,069.10 per ounce.

With India being a significant importer of gold, the rising global prices exert a direct impact on the domestic market.

Global gold prices have been on the rise as the dollar continues to depreciate against a basket of major currencies, currently approaching a three-month low. This depreciation makes gold more affordable when purchased in other foreign currencies.

Anticipation is growing that the Federal Reserve is likely to implement rate cuts in the upcoming months. The expectation of lower interest rates diminishes the attractiveness of financial instruments for investors compared to gold, which is perceived as a secure investment.

Despite these factors, the demand for gold in the domestic market remains robust, particularly during the marriage season, as the precious metal continues to be generously gifted to brides and grooms.