Gold Price Rises On Festive Demand — Check Rates In Delhi, Chennai, Other Cities

Gold prices are rebounding to levels above the Rs 1,10,000 mark driven by festive demand, geopolitical uncertainties and safe-haven demand.

In India, the prices were at Rs 1,10,430 per 10 gm on Monday, according to the India Bullion Association. 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 record high of $3,707.57 on Wednesday ahead of the meet.

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.

In New Delhi, the price stood at Rs 1,10,040 per 10 gm, and in Mumbai, it stood at Rs 1,10,230 on Friday.

In Bengaluru, the rate stood at Rs 1,10,310, while in Kolkata, it was Rs 1,10,080 per 10 gm. The price of the precious commodity was the highest in Chennai, trading at Rs 1,10,550 per 10 gm.

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

The precious metal's price rose to Rs 1,30,060 per kilogram, according to the India Bullion Association. That is compared with Rs 1,27,070 per kg on Friday.

Oct. 5 futures for silver were trading higher at Rs 1,30,096, according to the Multi Commodity Exchange.