Mumbai
On Wednesday, the price of gold reached a seven-month high on the global market, while in India, the price of a 10 gram piece of 24 carat gold exceeded Rs 62,500.
International gold prices have been rising as a result of the US dollar’s decline and declining bond yields. Additionally, there is growing anticipation that rate cuts by the Federal Reserve are likely in store for the upcoming months.
By 11.30 a.m. on Wednesday, spot gold had increased by 0.24 percent to reach $2,046 an ounce, the highest level since May 5. US gold futures for delivery in December increased by 0.3% to $2,045.40 an ounce. Since the start of the year, gold prices have increased by almost 10%.
Gold prices varied across different cities in India. Chennai recorded the highest price of 10 gm of 24 carat gold at Rs 63,050 while in Delhi and Mumbai the prices were Rs 62,710 and Rs 62,560, respectively.
Gold prices have been rising in the global market as the dollar has continued to depreciate against a basket of major currencies and is currently close to a three-month low which makes gold cheaper to buy in other foreign currencies. Expectations of low interest rates makes financial instruments less attractive for investors compared to gold which is considered a safe investment. The demand for gold in the domestic market remains firm amid the marriage season as the precious metal is gifted to brides and grooms in large quantities.
