Silver prices skyrocket ₹5,540 to ₹1.61 lakh per kg; gold prices jump to ₹1.28 lakh per 10 gram in Delhi

Gold prices (24K, 99.9% purity) jumped ₹2,000 to ₹1,27,900 per 10 gram in Delhi on Wednesday, November 12, amid firm global trends, according to the All India Sarafa Association.

The precious metal of 99.5% purity soared to ₹1,27,300 per 10 gram, up ₹2,000 from Monday's closing of ₹1,25,300 per 10 gram. In the last two sessions, the yellow metal has added ₹3,300 per 10 gram. Bullion markets were closed on Tuesday following a blast near Red Fort on Monday, November 10.

Meanwhile, silver prices skyrocketed by ₹5,540 to ₹1,61,300 per kg on Wednesday after closing at ₹1,55,760 per kg on Monday. 

In the overseas markets, spot gold was trading flat at $4,127.59 an ounce while spot silver rose 0.86% to $51.66 per ounce.

"Gold traded positive for another session, supported by gold in the international markets holding firm around $4,100 per ounce. The optimism over a potential US government reopening is driving sentiment, as it would allow the release of key economic data, critical for the Federal Reserve's rate outlook in the December meeting," a PTI report quoted Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, as saying. 

Gold, silver futures

At around 7:15 pm, gold futures for the December delivery were trading 0.46% up at ₹1,24,480 per 10 gram. The contracts rose to an intraday high of ₹1,24,800 per 10 gram on the Multi Commodity Exchange during the session on Wednesday.

Silver December contracts were trading 1.58% up at ₹1,57,129 per kg on the MCX on Wednesday after hitting an intraday high of ₹1,57,585 per kg on the MCX during the session. 

"Gold and silver continue to strengthen, as risk sentiment is supported by the possible end to the longest government shutdown in US history. The anticipation that the US government's reopening and the flow of economic data will boost chances for a Federal Reserve interest rate cut next month are further factors supporting it," another PTI report quoted Renisha Chainani, Head - Research at Augmont, as saying.

Investors are now awaiting official US macroeconomic data, as the government prepares to reopen after its longest-ever shutdown. The shutdown is expected to end within days and could ease the economic uncertainty to some extent. 

Geopolitical uncertainty, along with market volatility and a weak dollar, boosts gold demand and prices in both global and domestic markets. Easing geopolitical tensions can reduce demand for safe-haven assets.