Gold Up 0.50%, Silver Surges Rs 3,500 as Diwali Nears
New Delhi, November 2: Gold and silver prices moved higher on Monday, breaking a stretch of declines that had weighed on the market for several days. The uptick comes just ahead of Dhanteras and Diwali, a period that typically draws strong interest in precious metals.
Still, both metals remain far below their record highs. The latest gains came as buying picked up in domestic and international markets.
In the international market, gold on Comex rose about 0.33 per cent to $3,911.60 per ounce. Silver recorded a stronger gain, up 2.24 per cent at $50.380 per ounce.
According to market observers, investors who had been waiting for lower prices began buying after the recent steep correction, lending support to the rally.
Indian markets followed the global lead. Gold was trading around Rs 1.39 lakh per 10 grams, while silver was near Rs 1.82 lakh per kilogram.
On the Multi Commodity Exchange, December delivery gold opened at Rs 1,39,003 per 10 grams, compared with the previous close of Rs 1,38,485. That was an increase of Rs 518, or 0.37 per cent. During trade, gold climbed to Rs 1,39,179, rising Rs 694 or 0.50 per cent.
December delivery silver opened at Rs 1,81,094 per kilogram, up Rs 1,962 or 1.09 per cent from Rs 1,79,132. At its intraday peak, silver reached Rs 1,82,701 per kilogram, a gain of Rs 3,569 or 1.99 per cent.
The gains have brought some relief, but the metals are still considerably below their record levels. Gold is roughly 28 per cent lower than its all-time high, while silver has declined by more than 40 per cent.
Market specialists believe that the US mid-term elections, mounting global uncertainty and the recent heavy fall in prices have all contributed to buying at lower levels. Tensions in West Asia, high crude oil prices and signals from the US economy are also affecting investment strategies.
Traders are approaching Tuesday's US mid-term elections with caution. A heavy decline in the US stock market in recent sessions has also boosted demand for safe investment options.
Experts say the next move in gold and silver will depend on the US Federal Reserve's interest rate policy, the dollar index, bond yields and crude oil. If global uncertainty persists, precious metals could recover further.