Gold Hits Fresh Record High Driven By Festive Demand — Check Rates In Delhi, Chennai, Other Cities

Gold prices hit a fresh record high of levels above the Rs 1,11,000 mark driven by festive demand and safe-haven demand.

In India, the prices advanced to Rs 1,11,870 per 10 gm, according to the India Bullion Association compared to Rs 1,10,430 earlier today. The price was Rs 1,09,530 on Friday.

Gold prices had slipped further last week after the US Federal Reserve meeting. The commodity had hit a fresh high of $3,707.57 on Wednesday ahead of the meeting.

Gold had crossed the Rs 1,10,000 mark on Sept. 15, and the possible rate cut from the Fed had drove the rally. Market analysts are optimistic about the long-term prospects for gold following this decision.

According to Anuj Gupta, a market and commodities expert, the Fed’s action was largely anticipated is support a positive trend for the precious metal.

"As the labour market and inflation are still a cause of concern for the Fed, they want to keep an eye on the data. The trend of gold is looking positive for the longer term," Gupta stated. In the very near term, there might be some profit booking as the event passes off.

The spot prices rose to $3,714 according to the World Gold Council. The futures prices for Oct. 3 also advanced 1.40% to Rs 1,11,382.

In New Delhi, the price stood at Rs 1,11,530 per 10 gm, and in Mumbai, it stood at Rs 1,11,720 on Monday.

In Bengaluru, the rate stood at Rs 1,11,810, while in Kolkata, it was Rs 1,11,570 per 10 gm. The price of the precious commodity was the highest in Chennai, trading at Rs 1,12,050 per 10 gm.

The spot gold price was trading at $3,689 an ounce, according to the World Gold Council earlier today. The Oct. 3 futures for the yellow metal was trading at Rs 1,09,900 earlier today.