Gold Prices Rise as Festive Demand Looms in India
Gold and silver prices in India rose on Thursday, October 1, as markets assessed US interest rates and looked ahead to the upcoming festive and wedding season. On the Multi Commodity Exchange (MCX), December gold futures were trading at ₹1.49 lakh per 10 grams, up 0.51%, while December silver futures were at ₹2.24 lakh per kg, up 0.40%.
Gold has been under pressure in recent sessions due to higher US Treasury yields and a stronger dollar, which offset support from geopolitical uncertainty and inflation concerns, according to NS Ramaswamy, Head of Commodity at Ventura. He said gold is currently caught between these competing forces, with higher yields increasing the opportunity cost of holding the non-yielding asset.
The recent correction in prices has also brought physical demand into focus as India enters the peak festive and wedding period. According to Colin Shah, MD, Kama Jewelry, festive demand around Dhanteras and Diwali has historically remained relatively resilient because of the cultural significance attached to gold purchases.