Mumbai, December 3: Gold prices in India have reached an all-time high due to the peak demand of the wedding season and rise in international gold prices. Notable gains were witnessed in Chennai, where 24 carat gold touched Rs 64,530 per 10 grams in morning trade.
In major cities like Mumbai, Delhi, Bengaluru and Kolkata, gold price stood at Rs 63,760 per 10 grams, showing an increase of Rs 810 from the previous day’s prices.
International gold prices hit a seven-month high, with spot prices rising 1.6 percent to $2,069.10 an ounce on Friday. The global rise in gold prices has a direct impact on the domestic market of India, an important importer of gold.
The surge in global gold prices is attributed to the continued depreciation of the US dollar against major currencies. With the dollar hitting a three-month low, gold has become more affordable when bought in other foreign currencies. Additionally, there is growing fear that the Federal Reserve may implement rate cuts in the coming months. The expectation of lower interest rates reduces the attractiveness of financial instruments compared to gold, which is traditionally considered a safe investment.
Despite these global factors, demand for gold remains strong in the Indian market, especially during the current wedding season. Gold is a traditional gift exchanged in substantial quantities between the bride and groom, contributing to continued demand amid current high prices.
