Gold holds above Rs 1.47 lakh, silver near Rs 2.10 lakh as Dussehra closes markets

Stock markets are closed today for Dussehra, but investors and buyers are keeping a close watch on gold and silver prices. Despite recent swings, gold remains above Rs 1.47 lakh per 10 grams. Silver is trading around Rs 2.10 lakh per kg.

Experts say demand for gold as a safe investment remains strong amid global economic uncertainty, high inflation and an ongoing debate over interest rates.

On Monday, December-delivery gold on the Multi Commodity Exchange (MCX) closed at Rs 1,47,300 per 10 grams, down Rs 618 or 0.42 per cent. December-delivery silver was little changed at Rs 2,09,825 per kg. In the physical market, however, prices of gold and silver are higher. In Mumbai, 24-carat gold was recorded at Rs 147,340 per 10 grams and 22-carat gold at Rs 135,062 per 10 grams.

According to market data, gold prices have risen by more than 25 per cent since last Dussehra. Silver has outperformed gold, returning about 45 per cent. This is why investors are being drawn to precious metals even in a period of economic uncertainty.

In the international market, meanwhile, gold remains under pressure. Spot gold is at about $4,144 per ounce and spot silver at about $57.44 per ounce. Fears that rising crude oil prices will push up inflation and that the US Federal Reserve will raise interest rates are weighing on gold. Rising yields on US bonds and a recovery in technology shares have also reduced demand for safe-haven assets.

Market experts say gold has stayed consistently above $4,100 per ounce through October, which shows its strength. However, the market is optimistic about the possibility of one more interest rate increase before the end of the year.

Higher interest rates generally make non-interest-bearing assets such as gold less attractive. Even so, global inflation, geopolitical tensions and demand for safe-haven assets appear to be supporting gold and silver.