Gold and Silver Prices Surge Amid Rising Global Demand

Gold and silver prices experienced significant increases on September 22 and 23, 2023, driven by rising global demand and economic fluctuations. Gold prices rose by ₹ 2,700 to reach ₹ 1,18,900 per 10 grams, while silver surged by ₹ 3,220, hitting an all-time high of ₹ 1,39,600 per kilogram. These movements reflect a growing trend among investors seeking secure investment options.

The All India Sarafa Association reported that gold with 99.9 percent purity closed at ₹ 1,16,200 per 10 grams on September 22. Meanwhile, gold with 99.5 percent purity saw an increase of ₹ 2,650, closing at ₹ 1,15,650 per 10 grams. Market analysts attribute the rise in precious metal prices to a sharp decline in the Indian rupee against the US dollar. On September 23, the rupee fell by 47 paise, further escalating the prices of gold and silver.

In the international market, spot gold rose by more than 1 percent to $3,791.10 per ounce, while spot silver increased by 0.57 percent to $44.32 per ounce. These increases in the global market have had a direct impact on local prices, with future contracts on the Multi Commodity Exchange (MCX) reflecting similar trends. October futures for gold rose by around 2 percent to ₹ 1,14,163 per 10 grams, and December futures for silver increased by over 1 percent to ₹ 1,34,980 per kilogram.

The recent fluctuations in the US H-1B visa fees have also played a role in influencing investor behavior. As foreign capital flows into the market, the demand for precious metals has intensified, leading to new records in pricing.

As gold and silver are traditionally significant in Indian culture, especially during auspicious occasions, the recent price hikes are expected to impact consumer purchasing decisions. Investors and buyers alike are keeping a close eye on these developments, with many seeking to understand how global economic factors will continue to shape the market for precious metals.

With the current trends, it remains crucial for investors to stay informed about daily price changes and market conditions.