The Indian bullion market experienced a remarkable upturn on October 29, as both gold and silver prices saw a substantial increase. This surge comes after a persistent nine-day decline, marking a crucial rebound for investors and consumers alike. The festive season, with auspicious occasions like Dhanteras and Diwali approaching, often sees. A heightened demand for precious metals, and this recovery could further fuel buyer sentiment.
Significant Rebound on October 29
According to data from the India Bullion and Jewelers Association (IBJA), the price of 10 grams of gold soared by a significant ₹2,585 on October 29, reaching ₹1,20,628, while this is a substantial increase from the ₹1,18,043 per 10 grams recorded on Tuesday, October 28. Silver also mirrored this strong performance, with a rise of ₹4,737 per kilogram, pushing its price to ₹1,46,633 per kilogram, while this jump follows its price of ₹1,41,896 per kilogram on October 28, indicating a solid comeback in the market.
The Preceding Nine-Day Downturn
The recent price hike is particularly noteworthy as it follows a continuous nine-day period of decline, which had caused some apprehension among market participants. The downtrend commenced on October 20, the day of Diwali, when gold prices fell by ₹1,951, while from October 20 to October 28, the price of 10 grams of gold collectively dropped by ₹11,541. This period of correction saw considerable volatility, but the recent surge suggests a renewed confidence in the precious metals market.
Record-Breaking Year-to-Date Performance
The year 2024 has been exceptional for both gold and silver in terms of price appreciation. As of December 31, 2023, the price of 10 grams of 24-carat gold stood at ₹76,162, which has now escalated to ₹1,20,628. This translates to an impressive increase of ₹44,466 in gold prices this year. Similarly, silver has also demonstrated significant gains. From ₹86,017 per kilogram on December 31, 2023, it has now risen to ₹1,46,633 per kilogram, marking an increase of ₹60,616. These figures underscore the strong demand for safe-haven assets amidst global economic uncertainties.
Historical Highs and IBJA's Role
Earlier this month, on October 17, gold touched an all-time high of ₹1,30,874, while silver reached ₹1,71,275. It's important to note that the prices published by IBJA don't include 3% GST, making charges, or jeweler's margin, which is why actual retail prices in various cities may differ slightly, while however, these IBJA rates are crucial as they're utilized by the Reserve Bank of India (RBI) to determine the rates for Sovereign Gold Bonds and by several banks for setting gold loan interest rates, validating their significance in the financial ecosystem.
Essential Tips for Gold Buyers
Experts advise consumers to keep a few crucial points in mind when purchasing gold, while firstly, always buy certified gold that bears the Bureau of Indian Standards (BIS) hallmark. This hallmark includes an alphanumeric number (e. g, while , AZ4524) which indicates the purity (caratage) of the gold. Secondly, cross-check the correct weight and the prevailing price of gold on the day of purchase from multiple reliable sources, such as the IBJA website. It's also important to remember that prices vary for 24-carat, 22-carat, and 18-carat gold, while adhering to these precautions will help buyers ensure they're getting genuine gold at a fair price.
