Ahmedabad: Continuing the rally, the price of gold touched the highest nine months on Saturday to touch Rs 51,000 per 10g in Ahmedabad Market.
The last time gold touched this level was January 30 this year, when the price reached Rs 51,000 here, according to a Bullion trader.
Analysts connect the rally in the price of gold to surge in demand for gold in the international market.
Describe the reason, Haresh Acharya, Director, Bullion Association and Indian Jewelry (IBJA), said “The price of international gold has strengthened to $ 1,864.5 per ounce, according to the world gold council.
This is mainly due to increased demand for gold for industrial use.
It seems, the increase in global inflation has also pushed the price of gold further because gold is usually considered a fence against inflation.
“From low Rs 49,200 per 10 grams right in front of Diwali, the price of pure gold increased by Rs 1,800 only 10 days in the local market.
Analysts also linked a surge in yellow metal prices to Indian Rupee depreciation against the US dollar.
Similar trends were observed in silver.
Silver prices touched Rs 67,500 per kg in the local market on Saturday – up by RS 3,000 per kg since Diwali, when prices touched Rs 64,500 per kg.
Rally in gold and silver prices are expected to continue until the end of the year.
With increasing demand, price increases are expected.
Throughout the season during the celebration of Diwali, the demand for gold and silver remains floating, mostly driven by purchasing muhatat wedding jewelry, lightweight jewelry and coins and bars.
However, bar traders suggest that with a surge in gold prices recently this week, customer footsteps have been reduced.
“People who buy coins and bars for investment purposes tend to oversee prices.
With a dramatic price increase, the limit demand has a blow and people can wait a few weeks to stabilize prices,” said Hemant Choksi, a gold trader based in city.
“Jewelry demand marginally was hit with a price increase.
Those who have planned marriages must be buying because they are left with a little choice,” said Zaveribhai Zaveri, President, Association of Gujarat Jewelers (GJA).