Precious metals came back with a theatric flourish on February 4, as the price of gold and silver was among the most abrupt ever in recent history. The sharp jump appeared only a day after India and the United States declared a big trade agreement, which led to increased investor confidence and heavy trading in the safe haven trade in local and international markets.
Silver has monopolized the scene in the Multi Commodity Exchange where it shot 13.07 percent in a single trading day. It shot up by Rs 30,881 to close the trade at a historic high of Rs 2,67,410 per kilogram.
Gold-silver Gold next gained by 5.16 percent or Rs 7,307 to close the trading session at Rs 1,54,000 per 10 grams. The rally is an indication of the new demand in precious metals as the investors seek to gain stability in the face of global economic changes and trading optimism.
The prices of gold increased in all the key cities of India in the retail bullion market. In the case of 24 carat gold, Delhi was at about 15,409 per gram, and Mumbai and Kolkata were at 15,394 per gram.
The slightly higher rates were experienced at Chennai at around Rs 15,568 per gram because of the regional demand and tax differences. In Bengaluru, 24 carat gold was trading at an average of Rs 15,430 per gram and in Hyderabad, the price was at an average of Rs 15,450 per gram.
There were also strong upward trends in Pune and Ahmedabad and the prices were around Rs 15,400 per gram. The same trend was also experienced in the 22 carat gold segment, which is common in jewellery. Prices were close to Rs 14,126 per gram in Delhi.
The rates were approximately garnered at Mumbai and Kolcata at around Rs 14,111 per gram. Chennai was once more high at approximately 14271 per gram.
In those cities like Jaipur, Lucknow and Chandigarh, 22 carat gold price was quoted between 14,120 to 14,200 per gram, which indicated that the upward trend was not narrowly confined to only a few markets.
The extreme futures advancement was also reported in silver prices in the physical market. Silver in Mumbai was selling at approximately Rs 2,67,410 per kilogram whereas in Delhi it was selling at approximately 2,66,950 per kilogram.
Chennai had still more levels as high as around Rs 2,68,190 per kilogram. Bengaluru, Hyderabad and Kolkata had recorded prices of more than Rs 2,67,000 per kilogram.
The prices of silver were also held firm in such cities like Surat, Indore and Nagpur, which pointed to a high level of demand in the country both among the investors and industrial purchasers.
Gold Rates City-Wise
The following rates are as per 10 grams of gold.
- Mumbai: Rs 153,540
- Delhi: Rs 153,280
- Bengaluru: Rs 153,660
- Chennai: Rs 153,990
- Hyderabad: Rs 153,780
- Kolkata: Rs 153,340
- Pune: Rs 153,420
- Ahmedabad: Rs 153,310
- Jaipur: Rs 153,500
- Lucknow: Rs 153,470
- Chandigarh: Rs 153,520
- Surat: Rs 153,360
- Nagpur: Rs 153,450
- Patna: Rs 153,480
Silver Rates City-Wise
The following rates are as per 1 kg
- Mumbai: Rs 267,410
- Delhi: Rs 266,950
- Bengaluru: Rs 267,620
- Chennai: Rs 268,190
- Hyderabad: Rs 267,830
- Kolkata: Rs 267,050
- Pune: Rs 267,300
- Ahmedabad: Rs 267,140
- Jaipur: Rs 267,480
- Lucknow: Rs 267,520
- Chandigarh: Rs 267,600
- Surat: Rs 267,260
- Nagpur: Rs 267,390
- Patna: Rs 267,450
The rally did not just occur in India. Gold prices also shot up in the international markets with a resounding effect.
Spot gold had gone well beyond 2 percent to trade over 5,000 dollars per ounce, building on the already enormous gain of the previous day which had already registered one of the largest single day increases in over a decade. The gold contracts were also trading in high momentum in the United States futures market in April delivery.
Market analysts feel that the sudden increase in prices is associated with a mixed impact of geopolitical trends, currency trends and fresh safe haven purchases.
The news of the India United States trade deal is being considered as a positive move towards economic collaboration but it has also created speculations that make the currencies fluctuate and the flow of capital to be changed and this has made investors increase their allocations to precious metals.
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This boom follows a season of such high volatility, in particular, in silver. Premiums had become highly unstable in the run up to the Union Budget, with the traders recording gains following record buys. The recent recovery points out that the interest of investors is intact and dips are being exploited as a purchase opportunity.
As the world is yet to come to terms with uncertainties, and key economies alter their trade and monetary politics, the prices of gold and silver are bound to stay on the spotlight. To date, the February 4 rally can be remembered as a reminder of the speed with which sentiment can change in the commodities market, and make the country experience sharp and historical price changes.
