Gold prices in India surged to an unprecedented level on Tuesday, exceeding Rs 1 lakh per 10 grams. Financial analysts anticipate a potential short-lived correction capped at 10 percent. This comes amid growing global economic instability, prompting investors to seek safety in gold, a traditional inflation hedge.
Rajesh Rokde, Chairman of the Gem and Jewellery Council of India, noted that corrections following steep rallies in gold prices are typical but brief. ‘A 10 percent correction is normal after a sharp rally,’ Rokde told ANI. He highlighted a Goldman Sachs forecast predicting gold could reach USD 4,000 per ounce, driven by de-dollarisation and central banks increasing their gold reserves amid the prevalent global economic uncertainty.
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Gold and Silver Prices – City-wise Breakdown
Mumbai
- Gold bullion: ₹97,380/10 gm
- MCX Gold: ₹98,900/10 gm
- Silver bullion: ₹95,540/kg
- MCX Silver 999: ₹95,755/kg
Chennai
- Gold bullion: ₹94,750/10 gm
- MCX Gold: ₹98,900/10 gm
- Silver bullion: ₹95,460/kg
- MCX Silver 999: ₹95,755/kg
- Gold bullion: ₹94,350/10 gm
- MCX Gold: ₹98,900/10 gm
- Silver bullion: ₹95,820/kg
- MCX Silver 999: ₹95,755/kg
- Gold bullion: ₹97,540/10 gm
- MCX Gold: ₹98,900/10 gm
- Silver bullion: ₹95,690/kg
- MCX Silver 999: ₹95,755/kg
Bengaluru
- Gold bullion: ₹94,460/10 gm
- MCX Gold: ₹98,900/10 gm
- Silver bullion: ₹95,620/kg
- MCX Silver 999: ₹95,755/kg
New Delhi
- Gold bullion: ₹94,260/10 gm
- MCX Gold: ₹98,900/10 gm
- Silver bullion: ₹95,380/kg
- MCX Silver 999: ₹95,755/kg
The ongoing trade conflict between China and the U.S. has significantly contributed to this gold price surge, according to Rokde. Citing China’s insurance sector’s substantial gold investments, he explained that corrections typically align with 10 percent of the gold’s price during any rally phase. Uday Kotak of Kotak Mahindra Bank lauded gold’s performance, emphasizing its value as recognized by Indian households over generations.
