Gold, silver rates in focus as bullion market reopens after Dussehra holiday; IBJA 24-carat at Rs 1,45,944

Trading resumed in the bullion market on Wednesday, October 21, after the Dussehra holiday. Customers and investors are watching which way gold and silver prices move today. Experts had earlier said that the festival had improved demand for gold in the domestic market, but movements in the international market are also affecting prices.

The bullion market was closed on Tuesday, October 20, for Dussehra, so no change was recorded in gold prices that day in regular trading. To understand today's rates, it will be necessary to look at the market prices before the holiday and at international conditions.

Before the holiday, the futures price of 24-carat gold on the Multi Commodity Exchange had fallen 0.42 per cent to Rs 1,47,300 per 10 grams, a drop of Rs 618. On the previous trading day, the price had closed at Rs 1,47,918 per 10 grams. Silver was at Rs 2,11,351 per kg at the time. Some market reports had also put the price of gold at Rs 1,48,085 per 10 grams. These prices can vary because of differences between markets and modes of trading. Today's actual rates will become clear only after the market gets going.

According to IBJA, the morning rates are as follows: 24-carat gold at Rs 145944 per 10 grams, 22-carat at Rs 133685 per 10 grams, 18-carat at Rs 109458 per 10 grams and 14-carat at Rs 85377 per 10 grams.

Across cities, today's price of 24-carat gold is Rs 146080 per 10 grams in Mumbai, Pune, Nashik, Nagpur, Kolhapur, Sangli, Jalgaon and Chh. Sambhajinagar alike.

According to Saumil Gandhi, senior commodity analyst at HDFC Securities, demand for gold in the retail market had improved with the start of the festival season. A positive trend in the international market had supported gold prices in the domestic market on Monday, before the holiday. Gandhi said the fall in prices encouraged jewellery purchases. He also said that last week, for the first time in more than three months, physical gold deals in the domestic market were done at a premium. Diwali is a major festival in the country, so retail demand for gold is likely to rise further ahead of it, which could support the domestic market.

According to Vikas Gupta, chief executive officer of OmniScience Capital, the festival and wedding season is good for gold demand, and domestic prices may rise somewhat during this period. However, gold in the global market may remain under pressure because of the US Federal Reserve's decisions on interest rates. In his estimate, gold prices may see a limited rise during the festivals, after which prices may remain stable. He said the direction of gold prices cannot be determined by festival demand alone.

Gaurav Garg, head of research at the brokerage platform Lemon, said that softer crude oil prices and a fall in US bond yields eased inflation concerns somewhat. This supported precious metals such as gold and silver. Even so, their prices may move up and down depending on changes in the international market, the dollar, interest rates and investor demand.

People planning to buy gold should not treat the pre-holiday price as today's final price, because a new direction will become clear only once the market is trading. When buying jewellery, check the rate according to the purity, 22-carat or 24-carat. Also find out about making charges, goods and services tax and other applicable levies.