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The Indian bullion market experienced a significant surge on January 2nd, 2025, with gold prices climbing by a considerable Rs 330 to reach Rs 79,720 per 10 grams. This substantial increase, reported by the All India Sarafa Association, is attributed to robust buying activity from jewellers and retailers. The previous day's closing price stood at Rs 79,390, highlighting the dramatic upswing. This upward trend mirrors similar movements in international markets, where a rally in precious metal rates provided a significant boost to domestic bullion prices. The increased demand, coupled with the positive international market sentiment, created a perfect storm for price escalation. The analysis provided by Jateen Trivedi, VP Research Analyst at LKP Securities, underscores the role of Comex gold's performance above USD 2,640 and the weakening rupee in amplifying the bullish sentiment within the domestic market.
Silver also participated in this upward trend, experiencing an increase of Rs 130 per 10 grams, closing at Rs 90,630. The previous day's closing price for silver was Rs 90,500. This parallel increase in silver prices reinforces the broader positive sentiment within the precious metals sector. The futures market also reflected this bullish trend. Gold futures contracts for February delivery on the MCX saw an increase of Rs 205 (0.27%), reaching Rs 77,098 per 10 grams. Similarly, silver futures climbed Rs 859 (0.98%), settling at Rs 88,437 per kg on the commodities bourse. The international market also contributed significantly to the positive outlook. Comex gold futures rose USD 8.50 per ounce (0.32%), reaching USD 2,649.50 per ounce. This positive performance in the international markets fueled further confidence in the domestic market, contributing to the significant price increases observed.
Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, noted the positive start to 2025 for spot gold, building on the bullish momentum from the previous year. However, the market remains watchful of upcoming macroeconomic data releases from the US, including jobless claims and manufacturing PMI. These upcoming data points are expected to introduce further volatility into the bullion market. The anticipation surrounding these releases emphasizes the inherent sensitivity of the precious metals market to broader economic indicators. Furthermore, the Asian market also contributed positively to the outlook, with Silver Comex futures rallying 1.62% to USD 29.72 per ounce. This positive performance across various market segments and geographies solidified the bullish sentiment for both gold and silver.
Looking ahead, Renisha Chainani, Head of Research at Augmont - Gold for all, offered insights into the long-term outlook. She highlighted the ongoing geopolitical, political, and macroeconomic uncertainties as factors that will likely sustain the appeal of gold and silver as inflation hedges. She suggested a 'buy on dips' strategy, acknowledging the potential for price oscillations but maintaining a positive long-term outlook. Chainani's forecast is particularly bullish, predicting gold prices to reach USD 3,000 (approximately Rs 85,000) and silver prices to reach USD 38 (approximately Rs 1,15,000) within the next 5-6 months. This prediction emphasizes the strong underlying sentiment for continued growth in the precious metals sector, driven by a confluence of global economic and geopolitical factors.
Source: Gold Price Rises Rs 330 to Rs 79,720, Silver Up Rs 130