New Delhi: Dhanteras, which is being celebrated in northern and western parts of India on Friday, is considered as an auspicious day for buying gold, silver and other valuables. However, buying these precious metals may pinch customers’ pockets. Consumers will have to shell out 22% more for the same amount of gold they bought last year.
Gold prices are ruling at around Rs 39,000 per 10 gram on this Dhanteras, as against Rs 32,690 per 10-gram on the same day in 2018. In spot markets, prices of 24 Karat gold in Delhi rallied ₹220 to ₹39,240 per 10 gram while silver rates surged Rs 670 to Rs 47,680 per kg, Press Trust of India reported, citing HDFC Securities. Silver price on Dhanteras last year stood at Rs 39,540 per kg.
In Mumbai, gold price stood at Rs 38,755 per 10 gram today compared to the previous close of Rs 38,450.
Despite the surge in prices, gold is still the preferred choice of several households for reasons varying from safety to higher returns.
The sharp rise in price of the yellow metal is due to a slew of reasons ranging from global economic slowdown, the contentious US-China trade dispute, concerns over Brexit, Fed changing its stance and adopting multiple rate cuts, US-Iran geopolitical unrest, central banks buying gold to secure their reserves, fears of global slowdown and demand from ETF’s, among others.
Market analysts say that there has been pressure on the currency of Britain since the announcement of a referendum in December when Britain is out of the European Union, due to which the dollar has gained momentum. There has also been an increase in precious metals in the dollar. On the occasion of Dhanteras in the local market, there was an increase in retail subscription, due to which gold standard rose by Rs 250 to Rs 39,920 per ten grams, which is the highest level since September 5. The prices are expected to further rise in the next year.
In this year’s Budget, the government also increased the import duty on gold to 12.5%, further increasing the landed cost of gold in India. This has hurt retail demand in India, which is the world’s second-biggest consumer of gold.
(With Agency Inputs)