Precious metals became dearer ahead of the Indian festival of Akshaya Tritiya with Silver prices jumping by Rs 11,800 to Rs 2.57 lakh per kg while gold rose by Rs 3,000 to Rs 1.58 lakh per 10 grams in delhi on Wednesday.
The spike in prices was driven by fresh buying from jewellers and stockists ahead of Akshaya Tritiya, a day which is considered auspicious to buy precious metals. The festival will be celebrated on April 19 this year in India.
According to the All India Sarafa Association, the white metal soared by Rs 11,800, or 4.81%, to Rs 2,57,000 per kg (inclusive of all taxes) from Monday's closing level of Rs 2,45,200 per kg.
Gold of 99.9% purity also jumped Rs 3,000, or nearly 2%, to Rs 1,58,000 per 10 grams (inclusive of all taxes). The yellow metal had settled at Rs 1,55,000 per 10 grams in the previous market session. The local bullion market was closed on Tuesday for a holiday.
Traders attributed the sharp rise to pre-festival buying amid expectations of strong retail demand.
"Akshaya Tritiya continues to be one of the most significant periods for the jewellery industry, driven by both tradition and the enduring value of gold.
"While gold prices have seen volatility, consumer intent remains strong, with a clear preference for lightweight, versatile, and design-led jewellery that aligns with evolving lifestyles," Chetan Thadeshwar, Chairman & MD, Shringar House of Mangalsutra Ltd, said.
However, precious metals traded lower in the international markets. Spot gold fell $45.88, or nearly 1%, to $4,795.97 per ounce, while silver slipped 1.2% to $78.61 per ounce.
Gold hovered around $4,800 per ounce on Wednesday, driven by renewed optimism that the US and Iran could reach a deal to end the conflict, Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Meanwhile, Washington and Tehran are working to schedule a second round of talks after last weekend's negotiations failed to produce an agreement, analysts said.
"Hopes of de-escalation have eased concerns over an energy-driven inflation shock, improving sentiment toward precious metals," Gandhi added.
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